proposed transaction
Definition
A proposed transaction is a business deal or agreement that two or more parties are seriously considering but have not yet officially finalized or signed off on. Think of it as the stage where everyone has agreed in principle to do something together, but the paperwork and formal commitments are still being worked out.
Example
If you are negotiating to buy a competitor's store and you have agreed on a price but have not yet signed the purchase agreement, that deal would be called a proposed transaction.
Watch Out
Until a proposed transaction becomes final and binding, either party can usually walk away, so never spend money or make major changes to your business based on a deal that has not been officially closed.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.