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A party failed to deliver as promised and the nonbreaching party incurred substitute-performance costs. The decision maker must choose between a categorical shortcut and a fact-sensitive standard. Which statement is most consistent with bar-tested analysis?

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Reject all counterarguments once one party states a plausible rule statement. Apply the rules on contract remedies by testing each required element against the material facts, considering the identified exception or limitation, and granting only the consequence supported by the governing rule. Treat the doctrine as satisfied whenever the topic label appears in the facts, even if one required element is missing. Resolve the issue solely for the party with the sympathetic facts because bar-tested disputes turn primarily on fairness.

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