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The parties dispute the legal effect of a contested transaction. A party failed to deliver as promised and the nonbreaching party incurred substitute-performance costs. Another actor changed position after relying on the relevant statement, document, or official action. The parties disagree about the legal effect of those facts. Which analysis is most consistent with these facts?

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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 Remedies and apply it to the operative facts. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument. 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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