# Prospective Buyers > Prospective Buyers means potential customers looking to purchase **Term:** Prospective Buyers **Last updated:** 2026-07-29 ## Definition ## What Prospective Buyers Means in a Contract Prospective Buyers is a defined term used to describe parties who have expressed, or might express, an interest in acquiring something being sold, whether that is a company, a piece of real estate, equipment, or a portfolio of assets. The term is deliberately broad and forward-looking. It does not refer to a buyer who has already signed a binding agreement, but rather to anyone still in the pipeline of consideration, from someone who has merely received a teaser document to someone who has submitted a non-binding offer. Contracts use this term to draw a line between the pre-contractual stage of a transaction and the point at which a party becomes an actual, contractually bound purchaser. This distinction matters because obligations such as confidentiality, exclusivity, and non-solicitation often apply specifically while a party is still a Prospective Buyer, and those obligations may change or fall away once that party signs a definitive agreement such as a