Due Care and Due Diligence with Example

Due care refers to the level of attention, caution, and effort that a reasonable and prudent person would exercise in similar circumstances. It is the standard of care that is expected to be taken in order to avoid harm or injury.

Due Care Examples

1. Due care can be demonstrated in a variety of different situations, but one example would be a doctor's responsibility to provide their patient with a reasonable standard of care. This would include things like properly diagnosing a patient's condition, providing appropriate treatment, and monitoring the patient's progress. If a doctor fails to provide a reasonable standard of care and a patient is harmed as a result, the doctor may be held liable for negligence.
2. Another example would be a company's responsibility to ensure the safety of its employees. This would include things like providing proper training, maintaining safe working conditions, and ensuring that safety protocols are followed. If an employee is injured on the job and it is found that the company failed to take reasonable steps to ensure the employee's safety, the company may be held liable for negligence.

Due diligence refers to the research and investigation that a person or organization undertakes in order to confirm the facts and information related to a decision or a transaction. It is a process of inquiry and investigation to confirm the accuracy and completeness of information, and to identify any potential risks or liabilities.

Due Diligence Examples

1. Due Diligence can be demonstrated in a variety of different situations, but one example would be a business's responsibility to conduct proper research and investigation before making a significant decision. For example, if a company is considering making a major investment, it would be expected to conduct due diligence to confirm the facts and information related to the investment and identify any potential risks or liabilities. This could include things like reviewing financial statements, inspecting the property or assets, and consulting with experts.
2. Another example would be a individual's responsibility to conduct proper research and investigation before making a significant purchase, such as a house. This would include things like viewing the property, inspecting the neighborhood, and consulting with experts like real estate agent and lawyer

In summary, due care is the standard of care that is expected to be taken in order to avoid harm or injury, while due diligence is the research and investigation that is done to confirm the facts and information related to a decision or a transaction.