Caveat emptor as 'information asymmetry'. Defects in the good or service may be hidden from the buyer, and only known to the seller. A common way that information asymmetry between seller and buyer has been addressed is through a legally binding warranty, such as a guarantee of satisfaction. But without such a safeguard in place the ancient rule applies, and the buyer should beware. Under the principle of "caveat emptor", the buyer could not recover damages from the seller for defects on the property that rendered the property unfit for ordinary purposes. The only exception was if the seller actively concealed latent
Patent caveat Patent caveat A patent caveat, often shortened to caveat, was a legal document filed with the United States Patent Office. Caveats were instituted by the U.S. Patent Act of 1836, but were discontinued in 1909, with the U.S. Congress abolishing the system formally in 1910. A caveat was similar to a patent application with a description of an invention and drawings, but without examination for patentable subject matter and without a requirement for patent claims. A patent caveat was an official notice of intention to file a patent application at a later date. A caveat expired after one year, but