Ismail used a cheque to pay for a widget that he bought from Maria.Maria delivered the cheque to Geoff Gagne after writing her signature and the following words on the back of it: "To Geoff Gagne if he builds a gazebo in my backyard." After he acquired the cheque, Geoff wrote his signature and the following words on the back of it: "For deposit only." Which of the following statements is TRUE?

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The cheque contains a conditional endorsement because Maria made payment to Geoff conditional on him building a gazebo in her backyard. The cheque also contains a restrictive endorsement because Maria specified that the cheque can only be paid to Geoff if he fulfills the condition. Geoff's endorsement only limits negotiations to deposit only, and does not create a special endorsement. Fawn cannot negotiate the cheque without Geoff's endorsement adding a special endorsement, and Ismail is not required to add an accommodation endorsement.

Ismail Used a Cheque to Pay for a Widget That