Section 34 (1) of the Bill of Exchange Act provides that an endorsement in blank specifies no endorsee. Its effects is to convert the order bill into a bearer bill.
A special endorsement is an endorsement which specifies the person to whom, or to order, the bill is to be payable. Sec 34 (4) provides that when a bill has been endorsed in blank any holder may convert the blank endorsement into a special endorsement by writing above the endorsee’s signature a direction to pay the bill to the order of himself or some other person.
An endorsement is restrictive which prohibits further negotiation of the bill e.g. a bill endorsed “pay x only” or “pay x for the account of Y.” This gives the right to the endorsee to claim payment on the bill but prohibits him from transferring the right of payment to anyone else.
Section 33 of the Act provides that where a bill purports to be endorsed conditionally, the condition may be disregarded by the payer, and payment to the endorsee is valid whether the condition has been fulfilled or not.