Under the Negotiable Instruments Act, 1881, the right of the indorsee to receive payment may depend upon:

Section 52 NI Act allows the indorser, "by express words in the indorsement", to make the indorsee's right to receive the amount "depend upon the happening of a specified event, although such event may never happen". The condition must appear in the indorsement itself, so an oral agreement or a later notice from the drawer does not count.