Due Diligence

General: Measure of prudence, responsibility, and diligence that is expected from, and ordinarily exercised by, a reasonable and prudent person under the circumstances. Business: Duty of a firm's directors and officers to act prudently in evaluating associated risks in all transactions.

Investing: Duty of the investor to gather necessary information on actual or potential risks involved in an investment.

Negotiating: Duty of each party to confirm each other's expectations and understandings, and to independently verify the abilities of the other to fulfill the conditions and requirements of the agreement.