Due diligence is a term used for concepts involving the performance of an investigation of a business or person, or the performance of an act with a standard of care. The term will more commonly apply to voluntary investigations, but it could be a a legal obligation. Due diligence is the process where an acquirer evaluates a target company or its assets for acquisition. This process can protect
. buyers and sellers of real estate, to avoid liability under the Comprehensive Environmental Response, Compensation, and Liability Act, referred to as the Superfund Law. Due diligence is commonly used for investigation or audit of investments, or a sale of a company. Due diligence is used in court proceedings as an effort by a responsible party to avoid harm to another. It's also used in criminal defense, as it may be the only defense for a crime committed. More information may be found at http://www.irs.gov/individuals/article/0,,id=150531,00.html .
