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This dissertation was written as part of the Master of Laws program in Transnational and European Commercial Law, Banking Law, Arbitration / Mediation at the International Hellenic University. Due diligence, in the process of mergers and acquisitions, will be examined in a more general way with the purpose of making every reader understand the way that the investigation or exercise of care of a reasonable business takes place, before entering and finally concluding a transaction. Focusing on legal due diligence, the buyer's legal team will try to obtain a legal opinion on the target firm through the examination of its “checklist”. The last one, includes the sectors and the matters that are about to be examined and cannot constitute an exhaustive catalogue, once it is possible to be enlarged depending on the needs and the demands of the potential investor. For conducting due diligence with success, both the buyer and the seller need to cooperate. A faster, lower cost and more effective process can only be conducted with the disclosure of all the necessary information and data by the seller and the examination and assessment of them by the buyer’s team. The last ascertainment raises doubts and questions in every transaction, related to the credibility of this information and the protection in case of doubtful and finally failed deal. Solution to this problem seems to be easy, in case appropriate “clauses” are included from the early beginning of the transaction. This dissertation topic will delve into liability issues from both the buyer’s and seller’s part and derive its importance from trends related to the globalization of the markets. The enlarged risks and the adverse effects that would enjoy both parties (and especially the buyer) in case of a defective conduct, makes a comprehensive, fully and well-timed due diligence process more urgent than ever before. Whether from a business or legal aspect, pursuing this topic will make the reader appreciate the legal requirements of a business, as well as the impact of these rules on the way in which the business functions. Besides, business acumen backed by legal prowess is bound to be a winning combination for any youngster venturing into the competitive business environment.