Legal Dictionary of Pakistan

due diligence

1. The diligence reasonably expected from, and ordinarily exercised by, a person who seeks to satisfy a legal requirement or to discharge an obligation. - Also termed reasonable diligence. 2. Corporations & securities. A prospective buyer's or broker's investigation and analysis of a target company, a piece of property, or a newly issued security. ( A failure to exercise due diligence may sometimes result in liability, as when a .broker recommends a security without first investigating it adequately.