Luigi goes to the bank with his big brother Mario to get a personal loan for their new plumbing business. The bank manager says he doesn't feel comfortable making a loan to such a new business so their dad says he will make sure the payments are made. The bank makes the loan but doesn't have the dad sign any paperwork. Is the dad liable if Mario and Luigi default?

Luigi goes to the bank with his big brother Mario to get a personal loan for their new plumbing business. The bank manager says he doesn't feel comfortable making a loan to such a new business so their dad says he will make sure the payments are made. The bank makes the loan but doesn't have the dad sign any paperwork. Is the dad liable if Mario and Luigi default?

Yes, he specifically agreed to make sure the payments were made.

No$,$ he isn't liable because he didn't sign anything.

Yes, the loan was for the benefit of his sons.

No$,$ unless he works in the plumbing business too.