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Belinda owns a 30% profit and loss interest in the BOW LLC, and her basis in the interest is $30,000 excluding her share of the LLC's liabilities. Belinda guarantees a $40,000 LLC debt. Remaining liabilities (not guaranteed by any of the LLC members) are $100,000. Belinda's basis in the LLC is $100,000.
Unilateral Contract
A contract in which one party makes a promise in exchange for the other party's performance, rather than a promise in return.
Counter-Offer
A proposal made as a response to an offer, which negates the original offer and suggests new terms for an agreement.
Revocation
The official cancellation or withdrawal of an offer, license, or agreement.
Unilateral Contract
A binding agreement in which one party promises to do something in return for an act of the other party, rather than a promise.
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