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Interesting question. Due diligence is all about doing the thing necessary to ensure the person's or organization's interests are "looked after". As an example if a friend of yours was going swimming and he asked you to hold and watch his wallet for him, you wouldn't just leave the wallet somewhere someone could steal it. If you did that, you could be accused of not applying due diligence. You will of hear the term used in the real estate business. If you are responsible for taking people to see houses and some one wants to buy a house, due diligence requires you to go directly to your office and prepare a contract.
Legally determining due diligence is what is expected of the person, did they try their best to do it, and did they keep you informed?
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