What is “Due Diligence?”
What is “Due Diligence?”

Most of us have heard that term before, but really have no idea what it means.  However, almost everyone has actually “done their due diligence,” as the saying goes.  The simplest example of due diligence is not a legal term but one we are all familiar with – dating. As an example, John asks you to go on a dinner date and you agree.  You ask each other questions, get to know one another, and decide a second date is warranted.  And get to know each other more, and on to a third date, etc.  You did your due diligence, and John seems like a great guy and you enter into a “contract” for marriage.

You “did your due diligence,” when finding a suitable partner, so you should certainly do it when buying a house, a car, a small business, or just about anything else that requires a contract.  Some legal terms are much more simple than they sound!

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