What can result from a failure to conduct due diligence?

The correct answer highlights a significant consequence of neglecting due diligence in contract administration. Conducting due diligence is essential for assessing the risks and benefits associated with potential contractual relationships. When due diligence is performed, parties can gather critical information about the other party's financial status, reputation, previous performance, and any other relevant factors that could impact the contract's success.

If due diligence is insufficient or entirely skipped, organizations may find themselves inadvertently entering into unfavorable contractual relationships. This could lead to terms that are not beneficial, overestimated capabilities, or even hidden liabilities that could severely impact the project's outcome and overall business operations.

The other choices suggest positive outcomes of cooperation and communication, which are generally outcomes associated with good practices in contract management rather than the result of failing to conduct due diligence. Thus, while those aspects might enhance contract performance, they do not aptly reflect the risks involved in bypassing thorough assessment processes.