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After a deal breaks down, one party sues for relief and the other resists enforcement. A contractor substantially performed but missed a certificate requirement before payment. A party invokes an equitable or discretionary remedy after contributing to the problem. The parties disagree about the legal effect of those facts. Which option gives the best analysis?

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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 Conditions and apply it to the operative facts. Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements. Resolve the dispute on equitable fairness alone without identifying the governing doctrine or its limits.

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