DEFINITION of 'Caveat'

A Latin term that means "let him beware." Caveats have many applications in law and finance, pertaining to all parties involved being aware of all of the facts of a legal proceeding or transaction. Caveat is usually interpreted as a sort of warning or cautionary expression.


Caveats are frequently applied in expressions such as "caveat emptor," which means "let the buyer beware." Another phrase is "caveat subscriptor," which means "let the seller beware." Caveats can also refer to formal notices that are submitted during legal proceedings that stop or postpone the proceedings until the filer of the notice addressses the court or judge.

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