due diligence

noun

1

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.

Examples of due diligence in a Sentence

Recent Examples on the Web

Its proprietary due diligence and risk-assessment platform, FailSafe Analytics, evaluates film and television projects across multiple underwriting categories before being considered for financing. — Tanya Fedak, Variety, 18 Sep. 2026

The new standard applies environmental, chemical, human rights, business conduct, due diligence and traceability requirements across textile processing, manufacturing and trading. — Alexandra Harrell, Footwear News, 17 Sep. 2026

The Question Diligence Rarely Includes Most due diligence checklists ask about leverage ratios, key-person provisions and fee structures. — Peter Doyle, Forbes.com, 15 Sep. 2026

When taxpayers are funding these positions, the city has a responsibility to do its due diligence and ensure that those given this level of trust have truly turned their backs on their criminal careers. — Bryan Lynn, CBS News, 15 Sep. 2026

Word History

First Known Use

1598, in the meaning defined at sense 1

Legal Definition

due diligence

noun

1

: such diligence as a reasonable person under the same circumstances would use : use of reasonable but not necessarily exhaustive efforts

called also reasonable diligence

Note: Due diligence is used most often in connection with the performance of a professional or fiduciary duty, or with regard to proceeding with a court action. Due care is used more often in connection with general tort actions.

2

a

: the care that a prudent person might be expected to exercise in the examination and evaluation of risks affecting a business transaction

b

: the process of investigation carried on usually by a disinterested third party (as an accounting or law firm) on behalf of a party contemplating a business transaction (as a corporate acquisition or merger, loan of finances, or especially purchase of securities) for the purpose of providing information with which to evaluate the advantages and risks involved

the greatest exposure…for failure to conduct adequate due diligence arises in the context of public offerings of securities

—G. M. Lawrence

c

: the defense (as to a lawsuit) that due diligence was conducted