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How is Prospective Customer defined in a legal contract?

• Prospective Customer means any business entity that has either entered into a nondisclosure agreement with an [organization] or received a pending written proposal from the [organization] in the preceding [number] months. Seen in 72 SEC filings
• Prospective Customer means any entity with which the Employee had Material Contact for the purpose of selling or providing services, and to which Employee provided a bid, quote for Services, or other Confidential Information, during the twelve months preceding Employee’s termination date. Seen in 41 SEC filings
• Prospective Customer means any person with which discussions were held during the Relevant Period, regarding the possible distribution, sale or supply of Restricted Products or Restricted Services, with which the Executive had material dealings in the course of Employment. This excludes any subdivision of that person with which the Executive had no dealings during that period. Seen in 37 SEC filings
• Prospective Customer means any person or entity that was the direct target of sales or marketing activity by the Executive or whom the Executive knew was a target of the [organization]'s sales or marketing activities during the one year period preceding the termination of the Executive’s employment. Seen in 30 SEC filings
• Prospective Customer means a person or entity that the Participant contacted for the purpose of soliciting business on behalf of the [organization] or any of its Subsidiaries during the twelve months preceding the Termination Date; or, to which the [organization] or any of its Subsidiaries had submitted a bid or proposal for services during the twelve months preceding the Termination Date, and in which bid or proposal the Participant was involved in any material respect. Seen in 29 SEC filings

Note: pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Prospective Customer means an entity considered for trade by [organization] within the prior [number] months.

Relevant Contract Types:

• Non-Disclosure Agreement
• Services Agreement
• Supply Agreement
• Distribution Agreement

Relevant Circumstances:

• When engaging in a potential business partnership or deal.
• During business-to-business sales negotiations.
• When exploring opportunities for new distributors or suppliers.

Relevant Sectors:

• E-commerce
• Retail
• Manufacturing
• Software & Technology

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Genie Definition 2

• Prospective Customer means any entity directly targeted by executive within [number] months before termination.

Relevant Contract Types:

• Sales Contract
• Employment Agreement
• Consulting Agreement

Relevant Circumstances:

• When hiring senior management or sales executives.
• When negotiating executive compensation packages.
• In the event of a termination or resign of an executive.

Relevant Sectors:

• Professional Services
• IT
• Banking & Finance
• Telecommunications

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