Simple definition
A review process used to investigate information, risks, assets, or obligations before a transaction.
Corporate
What Does Due Diligence Mean?
A review process used to investigate information, risks, assets, or obligations before a transaction.
Example in a contract
A contract may use “due diligence” when describing a review process used to investigate information, risks, assets, or obligations before a transaction.
What due diligence means in a contract
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Why it may matter
Its practical effect depends on the exact wording and how it connects to the rights and obligations elsewhere in the agreement. Review the exact language rather than relying on the label alone.
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FAQ
Questions about due diligence.
What does due diligence mean in plain English?+
A review process used to investigate information, risks, assets, or obligations before a transaction.
Where might due diligence appear in a contract?+
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.