What document outlines loan terms?

What document outlines loan terms?

• A. The loan agreement
• B. The will
• C. The lease
• D. The purchase order

Answer: (A)

A loan agreement specifically outlines all the terms of a loan. It’s the legally binding contract between lender and borrower that spells out how much is borrowed, the interest rate, the repayment schedule and due dates, any fees or penalties, and any covenants or conditions tied to the loan. It also describes what happens if terms are not met, such as remedies for default or collateral arrangements. The other documents have different purposes: a will handles the distribution of assets after death, a lease covers rental terms for property, and a purchase order authorizes buying goods or services.