Diligence Obligation
/ˈdɪlɪdʒəns ˌɒblɪˈɡeɪʃən/
Definitions
- (n.) A legal duty to exercise reasonable care and thoroughness in fulfilling contractual or statutory responsibilities.
The contract imposed a diligence obligation on the contractor to complete the work safely and on time.
- (n.) The requirement to conduct reasonable investigations or reviews, often in corporate or financial contexts, to avoid negligence or liability.
The buyer's diligence obligation included verifying the seller's financial statements before closing the deal.
Forms
- diligence obligation
- diligence obligations
Related terms
See also
Commentary
Diligence obligation often implies a standard of care that is context-dependent; it is important in contract drafting to specify its scope to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.