Legal Due Diligence · glossary
A short agreement extending a law firm's duty of care on its report to named third parties. The banks lending Atlas most of the price relied on the Sunrise report under one, instead of running their own review. Report §2.4 · Chapter 2
Explained in Chapter 2, The Cast and the Setup, of Legal Due Diligence.
Also explained in Buying Commercial Property.
The banks lent against the same diligence that Atlas paid for. Instead of running their own review, they took a reliance letter, a short agreement that extends the firm's duty of care to named third parties. The paragraph then sets two limits. The firm's total liability is capped at the figure in the engagement letter, and the report speaks only as at its cut-off date, with no duty to update it.Read Chapter 2, The Cast and the Setup →
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