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diligence definition - legal

n

The effort required to carry out a responsibility or to meet a standard of care.
due diligence
A thorough review of documents, financial statements, and other relevant information pertaining to a proposed corporate transaction such as an acquisition or merger; lack of due diligence by one undertaking an examination of books and records may give rise to liability of that individual if the entity being acquired has lower value than expected.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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