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everything you do these days requires a lot of legalities thus the paperwork it is often debated why there is a need for documents for one it will serve as proof that the transaction indeed took place and in the case of business contracts it will also serve as a referral when disputes or conflicts arise loan agreement its purpose every agreement has a purpose why it was drawn up in the first place for a loan agreement it is to plainly define the terms that both parties involved are conforming to it also includes the responsibilities of each of the parties regarding the loan loan agreements are drawn up for the following use loan agreements are used by individuals or an organization to borrow or lend money incorporate aspects shareholders can make use of the agreement to borrow funds from the business as the name implies a loan agreement is a legal document containing the details and agreement of two parties regarding a loan agreed terms and conditions are included in the details if you
