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After a deal breaks down, one party sues for relief and the other resists enforcement. A contract named a lender for payment and the promisee later assigned payment rights. The facts are close, and both sides can cite a rule that appears favorable. 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 Third Party Rights and apply it to the operative facts. Resolve the dispute on equitable fairness alone without identifying the governing doctrine or its limits. Reject the claim or defense solely because the opposing party disputes a required fact. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument.

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