| gen. |
due diligence (1: such diligence as a reasonable person under the same circumstances would use: use of reasonable but not necessarily exhaustive efforts – called also reasonable diligence; • Due diligence is used most often in connection with the performance of a professional or fiduciary duty, or with regard to proceeding with a court action. Due care is used more often in connection with general tort actions. 2 a: the care that a prudent person might be expected to exercise in the examination and evaluation of risks affecting a business transaction b: the process of investigation carried on usu. by a disinterested third party (as an accounting or law firm) on behalf of a party contemplating a business transaction (as a corporate acquisition or merger, loan of finances, or esp. purchase of securities) for the purpose of providing information with which to evaluate the advantages and risks involved: the greatest exposure...for failure to conduct adequate due diligence arises in the context of public offerings of securities – G. M. Lawrence. c: the defense (as to a lawsuit) that due diligence was conducted. MWDL Alexander Demidov) |
