Top Categories Articles News Top Tags Berger Commercial Realty 2. Commercial Real Estate 1. CRE 1. Diligence Period means the period commencing upon the Date of this Agreement and ending at p. Diligence Period is defined in Section 2. Diligence Period means the period a commencing on the Execution Date ; and b ending not later than June 30, Diligence Period means the twelve 12 month period beginning upon such Change of Control , and each succeeding twelve 12 month period thereafter, but no Diligence Period shall begin after, or extend past , the second 2nd anniversary of the Effective Date.
Diligence Period has the meaning set forth in Section 2. Diligence Period has the meaning set out in Section 6. A better working definition is this: The careful work or effort reasonably expected from and ordinarily exercised by a person who seeks to satisfy a legal requirement or to discharge an obligation.
It is easier to evaluate due diligence from the perspective of the future. Imagine that after the sale you find out that the seller sold the assets of the business without disclosing 10, outstanding warranties to cover for faulty products. Honoring these warranties will put you out of business. You petition the court to rescind the purchase agreement due to a seller's failure to disclose these obligations. The court will look at whether a conscientious buyer in your shoes through reasonable efforts could have discovered this problem during the due diligence period.
If due diligence would have uncovered this, there won't be anything a court can do to help you. A buyer has a fixed period of time following a letter of intent to do due diligence. This letter of intent will specify this period, which is negotiable.
A starting point is days, depending on the complexity of the business. For good cause and if both parties agree, you may extend it.
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