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Definition: Due diligence is the process of examining all the material facts of a contract or a deal before a legal contract is signed by both the parties. Put differently, it could also mean verifying the accuracy of a statement.
Buyer shall have until p.m. (EST) on the date which is sixty (60) days after the Effective Date (?Due Diligence Period?) in which to conduct its due diligence and all inquiries and investigations with respect to the Property as may be determined by Buyer in its sole discretion and at its sole cost and expense.
In essence, a due diligence clause allows you a period of time to undertake searches and investigations of a property and provides you with a right to terminate if these results are unsatisfactory.
An example of the due diligence process in real estate would be a survey of a property for a sale by a professional and registered agent. The findings from the survey would then be given to the buyer so that they can make a fully informed decision as to whether to pursue purchasing the property.
Buyer shall have until the sixtieth (60th) day after the Effective Date (the ?Due Diligence Period?) to conduct its due diligence at the Property, including inspections, environmental surveys and engineering studies, and, subject to the requirements of Section 7(q), Seller will provide Buyer with full access to the ...
A buyer may want to add a "due diligence out" (making the buyer's obligation to purchase the assets subject to the buyer's satisfactory completion of a "due diligence" investigation relating to the business of the seller).