Fox, Dodge, and Gilbey agreed to become limited partners in
Palatine Ventures, a limited partnership. In a signed writing,
each agreed to contribute $20,000. Fox’s contribution consisted
entirely of cash, Dodge contributed $12,000 in cash and gave
the partnership her promissory note for $8,000, and Gilbey’s
contribution was his promise to perform two hundred hours of
legal services for the partnership.
a. Explain what liability, if any, Fox, Dodge, and Gilbey have
to the partnership by way of capital contribution.
b. If Palatine Ventures had been formed as a limited liability
company (LLC) with Fox, Dodge, and Gilbey as members,
explain what liability, if any, Fox, Dodge, and Gilbey would
have to the LLC by way of capital contribution