Limited commercial authority (German: “Handlungsvollmacht”) authorizes the holder of it to undertake all transactions and legal acts commonly associated with operating a commercial enterprise. The powers of representation pursuant to this authority are limited to the execution of business transactions of the commercial enterprise. The taking out of loans and the conducting of litigation proceedings are per Section 54 (2) HGB not covered by it. The scope of a limited commercial authority must be defined. A restricting of the authority vis-à-vis a third party is invalid if the third party did not know of or did not have to know of the restriction.