Regarding the content of economic legal relations on confirmation by the business entity of due diligence when choosing a counterparty

Abstract

The purpose of the article is to analyze the content of economic legal relations that arise when a business entity confirms due diligence in choosing a counterparty. In the context of modern business development, choosing the right partner is a key element in achieving business results. The author specifically examines the rights and obligations of participants in relations involving the confirmation and demonstration of due diligence in choosing a counterparty, which must be considered when selecting a counterparty, as well as the legislative norms that regulate them.

The research methods include the analysis of rights and obligations of participants in economic relations related to confirming due diligence in choosing counterparts, as well as the analysis of regulatory acts governing these issues, and scientific literature. The author conducts a comparative analysis of the relevance of these rights and obligations to demonstrating due diligence in selecting counterparties.

The research results indicate that the content of economic legal relations regarding confirming due diligence in choosing counterparts consist of the rights and obligations of economic entities that take actions to demonstrate due diligence in choosing counterparts and have to confirm these actions through audits of their business activities, tax audits, or the protection of their rights and legitimate interests in claims procedures or legal proceedings. In addition to the rights and obligations of such economic entities, the content of economic legal relations regarding confirming due diligence in choosing counterparts also include the rights and obligations of state authorities involved in monitoring the economic activities of these economic entities and enforcing legislative requirements through requests for information, tax reporting investigations, imposition of penalty measures, and more.

The research also highlights aspects of choosing a counterparty, such as trust and reliability issues in economic relations. It explores ways to protect the business entity from potential risks related to the inadequate implementation of rights and obligations of participants in these relations.

In the conclusions, the author suggests that it would be appropriate to enshrine in Ukrainian legislation governing relations between business entities and state authorities the rights and obligations of economic entities regarding the confirmation of due diligence in choosing counterparts, which would contribute to ensuring an adequate level of protection and control from the state.