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The parties dispute the legal effect of a contested transaction. Equipment was bolted to a building before a mortgage and later removed by a tenant or lender. The record contains both written proof and disputed oral testimony. The parties disagree about the legal effect of those facts. Which answer gives the best resolution?

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Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements. Reject the claim or defense solely because the opposing party disputes a required fact. 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 Fixtures and apply it to the operative facts.

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