Caveat Subscriptor

Definition of 'Caveat Subscriptor'


A latin term that means "let the seller beware." Caveat subscriptor means that any defect or shortcoming in a good or service that is sold to a willing buyer is the responsibility of the seller. Caveat subscriptor is generally applicable in highly-regulated markets and markets where competition is high.

Investopedia explains 'Caveat Subscriptor'


For example, Frank sells a car to Jim with the promise that the car is in good condition and is running smoothly. The car doesn't start when Jim tries to drive it away after paying Frank for the car. Frank is responsible for repairing the car under the caveat subscriptor doctrine.


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