Due Diligence
/ˈduː ˈdɪlɪdʒəns/
Definitions
- (n.) A reasonable investigation or care exercised by a party before entering into an agreement or transaction.
The buyer conducted due diligence before finalizing the merger.
- (n.) The process of verifying material facts and legal compliance in commercial transactions to mitigate risk.
Due diligence uncovered liabilities that affected the deal price.
Related terms
See also
Commentary
Due diligence is often a contractual or statutory requirement; precise scope depends on context and jurisdiction.
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.