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. What liability, if any, do 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, what liability, if any, would Fox, Dodge, and Gilbey have to the LLC by way of capital contribution?