Which document is often used to evidence a loan made to an individual or entity?

A promissory note is a legal document used to evidence a loan made to an individual or entity. It serves as a written promise from the borrower to repay the specified amount of money to the lender under agreed-upon terms, which can include the interest rate, repayment schedule, and consequences of defaulting on the loan. This document holds significant legal weight, ensuring that both parties understand their obligations and rights.

In contrast, a lease agreement is primarily a contract between a landlord and a tenant concerning the use of property and does not focus on a loan or debt obligation. A trust document outlines the management of assets held in a trust but is not specifically focused on loan agreements. A contract of sale pertains to the transfer of ownership of goods or property rather than the terms and obligations surrounding a loan. These distinctions clarify why the promissory note is the most appropriate answer for the representation of a loan.