This paper was prepared for a Television Education Network
seminar on 27 March 2012.
Practitioners and purchasers should conduct their own due
diligence in relation to the subject of this paper, rather than
relying on it.
Liability limited by a scheme approved under Professional
Standards Legislation
1.0 Why do due diligence?
Every buyer wants to know that they will get what they are
paying for.
To try and achieve this, well advised buyers will seek to obtain
comfort through one or more of the following:
- Vendor warranties;
- Personal inspection/trial periods; and
- Due diligence.
Purchasers are also generally aware that despite the provisions
of the Competition and Consumer Act and other laws, the basic
principle remains caveat emptor (buyer beware). The principle of
caveat emptor received strong judicial support from the 2004
decision of the High Court in Woolcock Street Investment Pty
Limited v CDG Pty Limited .
