Break Clauses

Whether a lease should contain an ‘option to determine’ i.e. whether the landlord or tenant should be entitled to break the lease at some point during the term. Break clauses are frequently negotiated on behalf of tenants, who are now inclined to be in a stronger negotiating position than was previously the case. Additionally, it is essential for both landlord and tenant to consider whether a break clause should be conditional on, for example, the payment of rent and/or the observance of the tenant’s covenants. An onerous condition may result in a tenant who has a break clause not, in practice, being able to rely on it, and the tenant in particular needs careful advice in this regard.

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