Legal

What is Due Diligence?

The investigation before a deal: reviewing a company's contracts, records and liabilities to find risks before signing. AI tools can speed up the reading, and lawyers judge what the findings mean.

3 shelves checked · 2 risks · unsigned

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Due diligence is…

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In real work

During due diligence on the bakery chain, the AI tool flagged six supplier contracts that could end if the company changed owners, and Ruth read each one.

In the illustration

The inspection lamp travels the CONTRACTS, RECORDS and DEBTS shelves box by box. Two boxes raise a risk flag and slide half out, and a findings card lands by the deal page, still clamped and unsigned.

Use it in a prompt

Start a due diligence review in your legal AI tool on these sample supplier contracts: flag change-of-control, exclusivity and termination clauses, quote each one, and rank the findings by risk to a buyer. Note anything missing from the set.

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