This section contains the nature of the case and procedural background.

Hendricks (P) instituted an interpleader action against Behee (D) and others. P was an escrowee of $5,000 paid by D as a deposit with an offer to purchase real estate owned by Smiths (D1). A dispute arose, and D filed a cross-claim against D1. P was awarded $997.50 to be paid out of the $5,000 deposit. The balance was awarded to D. D1 appealed. D and D1 had engaged in negotiations that went nowhere. D then made a written offer of $42,500 for real estate and $250 for a dinner bell and flower pots. That offer was mailed March 3 to D1. The proposed agreement was signed March 4, but before D was notified of the acceptance, D withdrew the offer.

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