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The parties dispute the legal effect of a contested transaction. Two lenders claimed the same collateral while one also held a signed instrument with a disputed defense. 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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Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument. Assume the doctrine applies because one element appears satisfied, even if the remaining elements are contested. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Priority and apply it to the operative facts. Reject the claim or defense solely because the opposing party disputes a required fact.

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