A note agreement refers to an agreement between a borrower and lender regarding a loan taken by the borrower. The agreement has all the terms and conditions related to the loan, the amount, date of signing the contract, mode of repayment, date of return, interest to be paid and the names of the two parties. By entering this agreement, the borrower is obligated to return the amount he has taken from the lender and follow all the other terms mentioned in the contract.
A note agreement is also used to mean promissory note agreements where one promises to pay to another party a particular amount in specific quantities over a particular time period. A note agreement must not be confused with a loan agreement where the terms and conditions are different, although a note agreement does offer evidence of a loan taken by a borrower. They are also different from IOUs as they specifically make a promise to pay back the amount.
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