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The parties dispute the legal effect of a contested transaction. Parties used a standard-form agreement and later disputed performance, interpretation, and damages. The record contains both written proof and disputed oral testimony. The parties disagree about the legal effect of those facts. Which answer gives the best resolution?

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Reject the claim or defense solely because the opposing party disputes a required fact. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Lease and apply it to the operative facts. Import a rule from a nearby issue instead of applying the rule triggered by these facts. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument.

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