Question

Mike and David signed a loan agreement together to borrow money for a boat. If David leaves town and cannot be found, what happens to the loan?

Answer 1

Answer:

A - Mike must pay the full monthly payment

Explanation:

Answer 2

I this case, the loan is still valid and at that point Mike would be responsible for finding a way to pay the loan back as agreed upon in the contract. This is called co-signing, when two parties both sign for a loan together. Both parties are responsible for the loan and even though David cannot be found, the loan must still be paid and Mike would be held responsible for this.