DUE  DILIGENCE

In a lay man term due diligence means the care that a reasonable person takes or exercise to avoid any sort of harm to other person or their property or to himself or his property.

It includes requisite efforts to be done for a certain act related to law, financial transaction etc.

The motive of due diligence is to find or identify the possible errors or omissions in the due course of business especially those matters which may results into unexpected or possible loss in the future.

Need of due diligence in the following cases:

• Joint Ventures & Collaborations
• Mergers and Acquisitions
• Agreements
• Licensing
• Partnerships
• New Ventures