In what circumstances is a legal assessment required?

Legal due diligence involves a thorough review of documents to ensure they comply with current legislation. This review may cover articles of association, contracts, agreements, minutes of meetings, internal company documents, etc. It is advisable to carry out such a review if there are doubts regarding the legitimacy of the documents or to identify any inadvertent errors within them.

Legal due diligence: situations for application

Legal due diligence can be applied in various fields: economics, finance, employment law, trade, banking, housing law, etc. In some cases, legal due diligence is carried out alongside accounting due diligence. This ensures the accuracy and correctness of calculations.

Main instances for conducting a legal review:

• During court proceedings to ascertain the fulfilment of previously drawn up and signed contractual obligations.
• Before concluding a major commercial transaction, for example, purchasing property. This significantly reduces the risk of encountering a fraudster and losing one’s capital.
• In some cases, a legal review helps to verify the completeness of the collected set of documents. In such cases, a lawyer helps to identify errors and correct them.
• If the marriage is accompanied by a prenuptial agreement. In this case, one of the parties may commission a legal review of the validity of each clause in the agreement. As a result, the lawyer recommends which clauses should be retained, and which are best removed or added.
• When signing a loan agreement for a very large sum (a mortgage or for the expansion of a large enterprise). The legitimacy of the document and the financial aspects are examined. The legality of the interest rate, the possibility of early repayment of the agreement, and any special conditions are examined.
• When preparing a deed of gift. If the property is valuable, then such an examination is particularly relevant. In some cases, this service is required when transferring a rent agreement.
• If the heirs have doubts about the authenticity of a will, it can be verified through a legal examination.

If you have any doubts regarding any valuable document, you should seek a legal examination. This will protect you from risks and financial losses. You can seek legal assistance from the experienced specialists at Svarog.