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After a business relationship breaks down, owners, managers, and outsiders dispute who is bound and who must pay. A seller promised to keep an offer open while the buyer made costly preparations. The parties disagree about the legal effect of those facts. How is the court most likely to rule?

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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 Corporate Formation and apply it to the operative facts. 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.

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