As has already been alluded to, there is a crossover between "pilot rules" and "engineer rules", and both sides don't necessarily understand each other.
Our aircraft are maintained to charter category.
Any defect is written on the maintenance release.
An item can be "temporarily cleared" (not the legal definition, but trying to keep it simple here) by applying the appropriate MEL.
If an MEL is not available (rare for things that pilots would accept anyway), we can apply to CASA for a PUS, which for pilots is effectively the same as an MEL.
We continue flying under the restrictions of the MEL or PUS until the fault is rectified by an engineer.
The MEL will contain the restrictions you've made mention of. Ie "aircraft restricted to VFR operations only" or "aircraft only to be flown in private or aerial work operations"