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The parties dispute the legal effect of a contested transaction. A contractor substantially performed but missed a certificate requirement before payment. The decision maker must choose between a categorical shortcut and a fact-sensitive standard. 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. Import a rule from a nearby issue instead of applying the rule triggered by these facts. 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 Performance and Breach and apply it to the operative facts.

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