(1) Where a person is authorised, without conferment of a general commercial power of representation, to operate a commercial business, to enter into a particular kind of transaction relating to a commercial business or to enter into individual transactions relating to a commercial business, such authority (authority to act) extends to all transactions and legal acts which are normally involved in operating such a commercial business or in entering into such transactions.
(2) The holder of a commercial authority to act will have authority to dispose of or encumber real property, to enter into bill of exchange commitments, to take out loans and to conduct litigation only if such authority has been specifically conferred on them.
(3) A third party must allow other limitations on the commercial authority to act to be asserted against them only if they knew or ought to have known of such limitations.