The ____ legally binds the borrower and lender to all items and conditions of an installment contract.
A) note
B) contract
C) security agreement
D) sales contract
E) bond

Question

Quizplus · Accepted Answer

The note, also known as a promissory note, is a legal document that contains the terms and conditions of the loan and legally binds the borrower and lender to all items and conditions of an installment contract. The other options (B) contract, (C) security agreement, (D) sales contract, and (E) bond may also be involved in the loan process, but do not solely refer to the document that legally binds the borrower and lender to the terms of the loan.

The ____ Legally Binds the Borrower and Lender to All