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The parties dispute the legal effect of a contested transaction. A vulnerable party signed one-sided terms after pressure and incomplete disclosure. 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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The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Statute of Frauds and apply it to the operative 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. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument.

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