Due diligence

Due diligence is the effort a party makes to avoid harm to another party. Quite often a party in a contract may be obligated to provide due diligence.

A "due diligence report" is often prepared to discover all risks and implications regarding a decision to be made.

An example of a "due diligence report" is a Phase I Environmental Site Assessment (ESA), which is performed to determine potential environmental conditions that may cause harm to the surrounding environment.