Definition - What does Due Diligence mean?
Due diligence is ensuring that you have all the available information needed prior to signing a contract or any piece of documentation. Any document that you attach your signature to is a legally binding piece of documentation, so it is crucial that you know exactly you are signing. It is the job of the signee to ensure that they have all the facts.
Safeopedia explains Due Diligence
In a workplace it is imperative to practice due diligence before acquiring any new business. You must make sure you know exactly what you are agreeing to before, as once you for signed the documentation it can be near impossible to get out of. As an employer, it is their duty to understand any debts, potential hazards, and current agreements that acquiring new business might result in. If taking up new business, due diligence would involve asking to look over any documentation and financial records this new asset possess, before making any lasting agreements.
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