Agreement is a legally binding document which is created when two or more parties (individuals, companies, or other entities) agree to the terms of a contract. It outlines the responsibilities, rights, and obligations that each party has agreed to undertake. Agreements can be verbal or written, and are often used in business, real estate, and other contractual arrangements. The most common types of agreements are: purchase agreements, contract agreements, rental agreements, loan agreements, and settlement agreements. Purchase agreements are used when goods or services are exchanged for money or other consideration. Contract agreements are used in employment and other business relationships. Rental agreements are used when a tenant rents a property from a landlord. Loan agreements are used by borrowers and lenders to outline the terms of a loan. Settlement agreements are used to resolve disputes between two or more parties.