Final answer:
The statement is true; the buyer's approval by the seller's lender is a condition precedent which must be met for the buyer to assume the seller's mortgage, making it a necessary and sufficient condition for the transaction to proceed.
Step-by-step explanation:
The statement "An example of a true condition precedent for the benefit of the buyer would be the buyer being approved by the seller's lender to assume the seller's existing mortgage" is true.
A condition precedent is a condition that must be fulfilled before a party's promise becomes absolute. In this scenario, the buyer's approval by the lender is a necessary step that must occur prior to the buyer assuming the mortgage; it is a requisite action that predicates the final transaction.
In general, all conditionals consist of an antecedent and a consequent, where the antecedent is a sufficient condition for the consequent to occur. Financial institutions frequently set forth such condition precedents, such as income verification and credit checks, to evaluate the risk before extending credit or loans.
Requiring a cosigner or collateral are other forms of conditions they might impose as safeguards. The statement is true.