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The parties dispute the legal effect of a contested transaction. A buyer took title after record notice of a use restriction and then built inconsistently with it. One argument was preserved, while another was raised only later. 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 Covenants and apply it to the operative facts. 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. Resolve the dispute on equitable fairness alone without identifying the governing doctrine or its limits.

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