Liability for Contribution Sample Clauses
The "Liability for Contribution" clause defines the responsibility of one party to reimburse or share in the payment of damages, losses, or costs that another party has incurred, typically due to joint liability. In practice, this clause applies when multiple parties are found liable for the same harm or obligation, and it sets out how the financial burden should be distributed among them. For example, if two companies are jointly sued for damages, this clause would determine how much each must pay toward any settlement or judgment. Its core function is to ensure fairness and clarity in allocating financial responsibility among parties who share liability, thereby preventing one party from bearing an undue share of the costs.
POPULAR SAMPLE Copied 1 times
Liability for Contribution. A person's obligation to make a contribution to a limited liability company is not excused by the person's death, disability or other inability to perform personally.
Liability for Contribution. (a) A Member of the Company is obligated to the Company to perform any promise to contribute cash or property or to perform services, even if the Member is unable to perform because of death, disability or any other reason. If a Member does not make the required contribution of property or services, the Member is obligated at the option of the Company to contribute cash equal to that portion of the agreed value (as stated in the records of the Company) of the contribution that has not been made. The foregoing option shall be in addition to, and not in lieu of, any other rights, including the right to specific performance, that the Company may have against such Member under applicable law.
(b) The obligation of a Member of the Company to make a contribution or return money or other property paid or distributed in violation of the Act may be compromised only by consent of all the Members. Notwithstanding the compromise, a creditor of the Company who extends credit, after entering into this Operating Agreement or an amendment hereof which, in either case, reflects the obligation, and before the amendment hereof to reflect the compromise, may enforce the original obligation to the extent that, in extending credit, the creditor reasonably relied on the obligation of a Member to make a contribution or return. A conditional obligation of a Member to make a contribution or return money or other property to the Company may not be enforced unless the conditions of the obligation have been satisfied or waived as to or by such Member. Conditional obligations include contributions payable upon a discretionary call of the Company prior to the time the call occurs.
Liability for Contribution. A Member's obligation to make their required Capital Contribution can only be compromised or released with the consent of all remaining Members or as otherwise provided in this Agreement. If a Member does not make the Capital Contribution when it is due, he is obligated at the option of any remaining Members to contribute cash equal to the agreed value of the Capital Contribution. This option is in addition to and not in lieu of any others rights, including the right to specific performance that the Company may have against the Member.
Liability for Contribution. (a) A Member of the Company is obligated to the Company to perform any promise to contribute cash or property or to perform services made by, on behalf of, or for the benefit of such Member, even if the Member (or the Person promising on behalf of or for the benefit of the Member (a "Benefactor")) is unable to perform because of death, disability or any other reason. If a Member or a Benefactor does not make the required contribution of property or services, the Member is obligated at the option of the Company to contribute cash equal to that portion of the Agreed Value (as stated in the records of the Company) of the contribution that has not been made. The foregoing option shall be in addition to, and not in lieu of, any other rights, including the right to specific performance, that the Company may have against such Member or Benefactor under applicable law.
(b) The obligation of a Member or a Benefactor to make a contribution or return money or other property paid or distributed in violation of the Act may be compromised only by consent of all the Members or Benefactors. Notwithstanding the compromise, a creditor of the Company who extends credit, after entering into this Operating Agreement or an amendment hereof which, in either case, reflects the obligation, and before the amendment hereof to reflect the compromise, may enforce the original obligation to the extent that, in extending credit, the creditor reasonably relied on the obligation of a Member or a Benefactor to make a contribution or return. A conditional obligation of a Member or a Benefactor to make a contribution or return money or other property to the Company may not be enforced unless the conditions of the obligation have been satisfied or waived as to or by such Member or Benefactor. Conditional obligations include contributions payable upon a discretionary call of the Company prior to the time the call occurs.
(c) Nothing in this Section 6.2 is meant to imply that a Member or Benefactor is required to make, or to require a Member or Benefactor to make, any contribution of cash, property or services to the Company unless and until such time as said Member or Benefactor specifically agrees in writing to do the same.
Liability for Contribution. The contributions identified in Section 6 above are deemed to have been made as of the date of this agreement. In the future, a Member's obligation to make their required Capital Contribution can only be compromised or released with the consent of a majority of the Members or as described elsewhere in this Agreement. If a Member does not make the Capital Contribution when it is due, he is obligated, at the option of any remaining Members, to contribute cash equal to an alternative agreed-upon Capital Contribution. This option is in addition to, and not in lieu of, any others rights, including the right to specific performance that the Company may have against the Member.
Liability for Contribution. 25 Section 6.3
Liability for Contribution. No promise by a limited partner to contribute to the limited partnership is enforceable unless set out in a writing signed by the limited partner.
Liability for Contribution. (1) Subject to the LLC agreement, a member is liable to a limited liability company to perform any promise to contribute cash or property or to perform services, even if the member is unable to perform because of death, disability or any other reason.
Liability for Contribution. 30 Section 6.3