Due Diligence
Useful for: Business/Government/Non Govt Organisations/Local Government
In Brief
- Do at least basic due diligence before every deal, even if you know the party well.
- Due Diligence enables you to understand who you are really contracting with, as opposed to what their marketing information may say.
- Depending on the type of contract and your position the financial/commercial stability of the other party may matter more or less to you.
- Basic due diligence on a company you are contracting with is cheap and easy to do through online services.
- Always search the company (or other legal entity) you are dealing with. If nothing else a company search will tell you that the company is properly incorporated and not under external administration or in liquidation.
- Be wary of dealing with Trust entities – it is usually the Trustee that is the legal entity you should be contracting with, not the Trust itself.
- Partnerships and Joint Ventures are not legal entities by themselves (unless they are incorporated).
Read Full Article
Already have a subscription?
Click the button below to view the article. If you are not logged in, you will need to do that.
Monthly Subscription
$25.00 per Month (inc GST)
You can purchase a subscription and get access to all articles right now.
You'll be notified by email when new content is added or existing content is updated.
Your subscription will continue until you cancel it. You can do this at any time before the end of your monthly billing period.