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The parties dispute the legal effect of a contested transaction. A client forwarded legal advice to a business partner before litigation. 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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The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Privileges and Defenses and apply it to the operative facts. Import a rule from a nearby issue instead of applying the rule triggered by these facts. Reject the claim or defense solely because the opposing party disputes a required fact. Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements.

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