The online resource for UK Property Law

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?

 

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Notices

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...

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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...

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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...

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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...

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