Final answer:
An agreement letter between a borrower and a giver is commonly known as a promissory note. It outlines the terms and conditions of the loan, including repayment terms, and is signed by both parties to make it legally binding.
Step-by-step explanation:
An agreement letter between a borrower and a giver is commonly known as a promissory note. This is a written agreement that outlines the terms and conditions under which the borrower is obligated to repay the loan amount to the giver. The letter should include the following information:
- Names and contact information of both parties
- Loan amount and interest rate (if applicable)
- Repayment terms and schedule
- Any additional terms, such as late payment fees or collateral
- Date and signatures of both parties
Here is an example:
Date: [Insert Date]
Borrower's Name: [Insert Borrower's Name]
Giver's Name: [Insert Giver's Name]
Loan Amount: [Insert Loan Amount]
Interest Rate (if applicable): [Insert Interest Rate]
Repayment Terms: [Insert Repayment Terms]
Additional Terms (if any): [Insert Additional Terms]
Date of Repayment: [Insert Date of Repayment]
Both parties should sign the agreement at the bottom to make it legally binding.