(1) Where a commercial agent who is entrusted only with procuring business has concluded a transaction in the trader’s name, and the third party did not know of the lack of power of agency, the transaction will be deemed to be ratified by the trader if, after having been informed by the commercial agent, or by the third party, of the conclusion of such transaction and the material terms thereof, the principal fails to repudiate it without undue delay vis-à-vis the third party.
(2) The same applies if a commercial agent entrusted with concluding transactions has concluded a transaction in the trader’s name which they are not authorised to conclude.