Due diligence

{
  "id": "MLC-T-ENV-008723",
  "term": "Due diligence",
  "field": "Environment",
  "term_source": "Due Diligence",
  "definition": "Due Diligence is a term of art in the business community that refers to the combination of procedures and investigation undertaken before a business transaction (e.g., acquisition of real property or granting a loan in order to assess potential liabilities and problems). In particular, information is gathered to gauge the level of environmental risks associated with the proposed transaction so that parties may mitigate or allocate such risks, as well as qualify for any special liability relief available (e.g., innocent landowner defense, secured creditor protection). In order to qualify for any special liability relief, a party must often meet a test called \"all appropriate inquiry,\" which is a standard that is normally consistent with good commercial practices that a person exercises for his own protection.",
  "subject": "Land, waste and cleanup",
  "references": [
    "Environmental Insurance and Risk Management Tools Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/due-diligence/"
}