A Payment Agreement is a legally binding contract between two or more parties—a lender and a borrower—over payment(s) to be exchanged in the future. Payment Agreements can cover any type of transaction, from a loaned amount of money to the exchange of goods or services. The terms of the agreement will outline all necessary details regarding payment, such as the amount to be paid, the due date and any applicable interest rate or late fees. To hold each party accountable for their obligations under the Payment Agreement, it must be written and signed by both parties. The document is typically accompanied by other forms, such as loan documents or invoices, so that everyone is aware of the context in which the agreement was created.