Words / D / Law

due diligence

B1CEFR level
50/100Rarity: uncommon
TechnicalRegister

Law phrase

The investigation of a target company's legal, financial and commercial affairs before a transaction.

Due diligence revealed an undisclosed litigation risk that reduced the purchase price.

Topic: Corporate law in Legal English

Business noun

The detailed investigation of a deal before committing to it.

Due diligence turned up two lawsuits they had conveniently left off the disclosure.

Similar: vetting

Topic: Negotiation in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Corporate law