law: the care that a reasonable person exercises to avoid harm to other persons or their property
failed to exercise due diligence in trying to prevent the accident
2
business: research and analysis of a company or organization done in preparation for a business transaction (such as a corporate merger or purchase of securities)
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Doing Your Due Diligence
Due diligence has been used since at least the mid-fifteenth century in the literal sense “requisite effort.” Centuries later, the phrase developed a legal meaning, namely, “the care that a reasonable person takes to avoid harm to other persons or their property”; in this sense, it is synonymous with another legal term, ordinary care. More recently, due diligence has extended its reach into business contexts, signifying the research a company performs before engaging in a financial transaction. This meaning may also apply to individuals: people are often advised to perform their due diligence before buying a house, signing a loan, or making any important purchase.
Example Sentences
Recent Examples on the WebOver the next week and a half, Anderson did her due diligence. Samuel Braslow, The Hollywood Reporter, 1 Sep. 2022 Of course, Musk famously waived due diligence in forging the Twitter deal. Shawn Tully, Fortune, 27 Aug. 2022 Conduct some due diligence and pull up all your pages on a variety of devices. Rhett Power, Forbes, 14 Aug. 2022 The staff relied on a handful of signals to move quickly and be less cautious with due diligence and valuation, the former employees said. Eliot Brown, WSJ, 2 Aug. 2022 Until then, Americans could see fewer items on store shelves, says Brandon Daniels, CEO of Exiger, a platform that helps companies manage due diligence and supply chain risks.Fortune, 18 June 2022 The study issued by the City Auditor’s Office also found that the Faulconer administration failed to conduct proper due diligence before entering real estate deals worth more than $230 million. Jeff Mcdonald, San Diego Union-Tribune, 22 July 2021 As with any investment, investors should consider each ESG opportunity on its individual merits and conduct appropriate due diligence. Rebecca Baldridge, Robb Report, 5 July 2021 This guide is divided into three sections; the first two will help renters do their due diligence. Lisa Song, ProPublica, 18 Aug. 2022 See More