# 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.

## 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.

## Related terms

- [Duty of Competence](https://prompthausapp.com/learn/duty-of-competence.md)
- [Client Confidentiality](https://prompthausapp.com/learn/client-confidentiality.md)
- [Informed Consent](https://prompthausapp.com/learn/informed-consent.md)
- [Duty of Supervision](https://prompthausapp.com/learn/duty-of-supervision.md)
- [Attorney-Client Privilege](https://prompthausapp.com/learn/attorney-client-privilege.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews. Then it quizzes you until the word sticks. One term a day on iPhone.

- Category: Legal
- HTML: https://prompthausapp.com/learn/due-diligence
- App Store: https://apps.apple.com/us/app/prompthaus-ai-vocabulary/id6776314407