Due Diligence

Due diligence can have a variety of meanings depending on context. In general terms, the law imposes a duty of care on persons in certain situations, which requires them to take steps to discover and correct problems. Failure to exercise due diligence may disqualify the individual from obtaining a remedy under the law if they are harmed by problems that would have been discovered. The concept of due diligence often comes into play in mergers and acquisitions (M&A), sales of intellectual property, licensing and many other contexts.