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

Vaske (P) was involved in an auto accident with a car owned and operated by parties insured with West American (D). P got a lawyer to represent her for her personal injuries. Settlement negotiations were started in 1986. As of November 1986, D offered $25,000. That offer was again confirmed on December 1 by letter. The letter did not specify a date on which the offer would terminate. On January 9, 1987, P’s attorney sent a mailgram to D in which he on behalf of P unconditionally accepted the offer. D refused to pay arguing that there was no contract between the parties because the statute of limitations on P’s claim had run on January 1, 1987, eight days before the offer was accepted. P then sued D for breach of an alleged settlement agreement. Both parties filed motions of summary judgment. The trial court gave the verdict to P for $25,000 and denied D’s motion. D appealed: judgment should have been given to it, or any factual disputes should have been resolved by the jury.

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