What document acknowledges a borrower's debt and promise to repay the lender?

A promissory note is a legal document that explicitly acknowledges a borrower's debt and includes the borrower's promise to repay the lender according to the terms outlined within the document. This instrument is a critical component of the lending process, as it serves as proof of the borrower's obligation to repay the loan amount, often detailing the interest rate, repayment schedule, and any penalties for default.

The promissory note is separate from other documents, such as a mortgage deed, which typically secures the loan against the property, or a loan agreement, which may contain broader terms and conditions of the loan but does not specifically capture the borrower's promise to repay. A real estate contract, on the other hand, involves the purchase of property and details the buyer-seller relationship, not the terms of borrowing funds. Thus, the promissory note is the correct choice as it specifically addresses the borrower's acknowledgment of debt and commitment to repayment.