What is ‘due diligence’ in the context of art law?

Due diligence is an important principle in art law, particularly in the state of Delaware. It refers to the process of research and investigation undertaken by a party in order to act in a professional and responsible manner. It is a legal obligation that requires an art dealer or collector to take reasonable steps to ensure that any artwork being acquired is genuine and that the rightful owner(s) of the artwork are properly identified. Due diligence includes thoroughly researching the artwork’s provenance (including checks of the permanent collection of major museums to determine if it is already owned by another entity), verifying the physical condition of the artwork, and locating any and all legal paperwork which may be associated with the artwork (including insurance policies, authenticity certificates, etc.). Additionally, if a claims of a title defect or lien are made against the artwork, due diligence requires that they be thoroughly investigated. Due diligence can also be used by art dealers and collectors to assist them when making decisions concerning resale, authentic claims, fraud, and other legal matters. It’s a process which should be undertaken in order to protect both the buyer and the seller in art transactions and to ensure that all obligations are met.

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What is ‘due diligence’ in the context of art law?

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