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Source Business Associations California Bar Exam Topic Index Showing the closest available flashcard practice.

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The parties dispute the legal effect of a contested transaction. A seller promised to keep an offer open while the buyer made costly preparations. 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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Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements. Import a rule from a nearby issue instead of applying the rule triggered by these facts. 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 Consideration and apply it to the operative facts.

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