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The parties dispute the legal effect of a contested transaction. A manager signed a supply agreement after receiving mixed instructions from the owner. The disputed action was partly authorized but exceeded an important limitation. The parties disagree about the legal effect of those facts. Which option gives the best analysis?

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Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument. Resolve the dispute on equitable fairness alone without identifying the governing doctrine or its limits. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Agent Duties and apply it to the operative facts. Reject the claim or defense solely because the opposing party disputes a required fact.

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