Which of following is true about the capital contributions of members to an LLC?
a) Capital contributions must be made in the form of Cash.
b)An unfulfilled promise to make a capital contribution is generally unenforceable.
c)Members are required to make equal contributions in order to maintain their limited liability.
d)A promise by a member to contribute services is excused if the member is unable to perform the particular services promised.
e)A member who promised to make a capital contribution is not discharged from the promise if the member dies without having made the contribution.
i beleive it is b, because partnership should be about each other advantages. what you think
To determine which statement is true about the capital contributions of members to an LLC, let's analyze each option:
a) Capital contributions must be made in the form of Cash: This statement is not universally true. While cash is a common form of capital contribution, members may also contribute property, assets, or services, subject to the LLC's operating agreement.
b) An unfulfilled promise to make a capital contribution is generally unenforceable: This statement is generally true. If a member fails to fulfill their promise to make a capital contribution, it is often considered unenforceable, meaning the member cannot be legally compelled to fulfill their commitment.
c) Members are required to make equal contributions in order to maintain their limited liability: This statement is not true. Members are not necessarily required to make equal contributions to maintain limited liability. Contributions can vary based on the terms outlined in the LLC's operating agreement.
d) A promise by a member to contribute services is excused if the member is unable to perform the particular services promised: This statement is generally true. If a member promises to contribute services to the LLC but becomes unable to fulfill that commitment, they are typically excused from the obligation to contribute those specific services.
e) A member who promised to make a capital contribution is not discharged from the promise if the member dies without having made the contribution: This statement is generally true. Typically, the death of a member does not discharge them from the promise to make a capital contribution. The responsibility to fulfill the contribution may pass to the member's estate or designated successors.
Based on this analysis, option b) is the correct answer. An unfulfilled promise to make a capital contribution is generally unenforceable in an LLC.