This page deals with various matters relating to the effectiveness of break clause notices. Acknowledgement of notice required Orchard (Developments) Holdings Plc v Reuters Ltd [2009] EWCA Civ 6 Where a lease provided that a break notice would only be valid where the...
Break Clauses
These page contains material dealing with break clauses. See the contents on the left. Points covered include
- Acknowledgement of notice required.
- Defects in notices.
- Effect of dilapidations settlement on break clause.
- Material compliance
- Minor breach makes clause inoperable (Avocet)
- Tenant’s right to break passing on assignment
- Yielding up – vacant possession – has tenant done enough?
Material compliance and breaches
What happens if the tenant is in breach? Is there a minor breach? Has the tenant materially complied with the terms of the lease? Is the tenant required to pay the full-quarter's rent if the break is due to take place in the middle of the quarter? Do any of these...
Repayment of rent
Break clause operation Reimbursement of rent payable in advance on exercise of break right - no implied term Marks and Spencer plc v BNP Paribas [2015] UKSC 72 Summary A term would not be implied in a lease permitting the tenant to recover rent paid for the period...
Vacant possession
Security guards John Laing Construction Ltd v Amber Pass Ltd [2004] 17 EG 128 (Deputy High Court Judge). T operated a break clause in the lease and went out of occupation. However, T retained security guards and protective barriers at the premises for security...