A Letter of Caution is an official warning issued by a business or organization to inform someone that they have acted inappropriately, violated terms and conditions, or breached a code of conduct. The language in a Letter of Caution should be clear and direct, warning the recipient as to the repercussions of their actions. It should succinctly explain the consequences for failing to rectify the situation. Unfortunate though it may be, a Letter of Caution – if necessary – helps ensure that everyone involved understands the potential implications of their behavior and stands accountable for their actions.