Because the vapor in the air is condensed into clouds by the cold at the top of the mountain.

When is a cloud formed in the air?

When a warm, damp wind meets with a cold wind, its vapor is condensed and a cloud is formed.

Are clouds often formed in this way?

Yes; clouds are often quickly formed in this way.

When the cloud passes into a warmer current of air, what becomes of it?

It is changed back into vapor, so that it cannot be seen.

How then can a cloud in the sky disappear very quickly?

By passing into a warmer current of air the cloud is changed into a vapor, and may thus quickly disappear.

Are clouds of different heights?