due diligence

[ doo dil-i-juhns, dyoo ]

noun

, Law, Business.

1. reasonable care and caution exercised by a person who is buying, selling, giving professional advice, etc., especially as required by law to protect against incurring liability:

   The court said there was due diligence on the part of the plaintiff.

2. the process of gathering or disclosing relevant and reliable information about a prospective sale, purchase, contract, etc.:

   You should perform due diligence on a company before investing.

Word History and Origins

Origin of due diligence¹

First recorded in 1450–1500, for the earlier sense “requisite effort”; 1785–90, for the current sense

Example Sentences

“No matter how much protection and how much due diligence goes behind trying to keep humans and people away from the reefs, the effects of climate change are just absolutely devastating to these ecosystems,” Dempsey said.

From Salon

David O’Sullivan, the EU’s Special Envoy for the Implementation of Sanctions told us that efforts continue to shut down “illicit procurement networks”, and that “companies are required to undertake due diligence checks to understand who is the final end-user and where ‘battlefield items’ end up ultimately”.

From BBC

When contacted by the BBC, Wirral Council said it was not aware of this and said responsibility to undertake due diligence checks laid with the DfE.

From BBC

However, the DfE confirmed its due diligence checks did not examine the financial background of independent schools' prospective proprietors.

From BBC

It was committed to transparency but there was "an expectation and obligation that the customer completes their own due diligence".

From BBC

More About Due Diligence

What does due diligence mean?

Due diligence most generally means reasonable care and caution or the proper actions that a situation calls for, especially those that help to avoid harm or risk.

Due means “proper” or “required.” In legal contexts, diligence means “the degree of care required in a given situation.” In this way, due diligence is the level of care or caution that a specific situation calls for.

Due diligence is especially used in legal and business contexts involving buying, selling, or giving professional advice. This kind of due diligence is often required by law in order to prevent liability.

The phrase due diligence can also refer to the process of researching or disclosing pertinent information before entering into a contract or deal.

For example, in the sale of a house, due diligence on the part of the seller involves disclosing information about the house, such as major problems and the dates when repairs were made. The buyer performs their due diligence by gathering this information and making the proper inspections of the house before the purchase.

It can also be used in more general contexts, as in Don’t believe everything you read on the internet—do your due diligence and fact-check anything that sounds fishy.

The phrase is often used with the verbs perform and do.

Example: Be sure to do your due diligence before investing—you want to be sure where your money is going and what the terms are.

Where does due diligence come from?

The first records of the phrase due diligence come from the 1400s, but the first records of it being used in its modern sense come from the 1780s.

Widespread use of the term increased during the second half of the 1900s. It has become especially associated with the kind of research and disclosures performed before contracts and sales are finalized and investments are made.

Did you know ... ?

What are some synonyms for due diligence?

• diligence

What are some words that share a root or word element with due diligence? 

• due
• diligence
• due process of law

What are some words that often get used in discussing due diligence?

• legal
• law
• business
• deal
• analysis
• investigate
• background
• information
• research

How is due diligence used in real life?

Due diligence is typically used in the context of business or legal transactions. It is especially used with the verbs do and perform.

To all my friends who just gained interest in the stock market. $GME is what I call a meme stock. Do your due diligence before investing in companies. DON’T just listen to randoms on the internet.

— Daniel (@D_PowRs) February 2, 2021

This is scary stuff. Please perform your due diligence. If it sounds too good to be true, there’s a possibility it might be. https://t.co/vevSpxdfNz

— Marshall Clark (@mclarkcrypto) March 17, 2018

THUNE on Pruitt’s future: “Ultimately it’s going to be a decision between the President and the Adminstrator, but there’s enough smoke out there right now that I think it’s going to require some due diligence on the part of the WH and folks up here who are looking at it.”

— Frank Thorp V (@frankthorp) April 24, 2018

Try using due diligence!

Is due diligence used correctly in the following sentence?

I advise everyone to perform their due diligence by hiring a home inspector—you want to know what you’re buying.