Last year we saw a number of cases where tenants failed to break their leases due to their leases containing conditional break clauses. In Canonical UK Ltd and TST Millbank LLC (2012) EWHC 3710 (Ch) the High Court considered this issue once again.
The Facts
The Claimant tenant, (“Canonical”), served a valid break notice on its landlord to terminate its lease of premises on the 27th floor of the Millbank Tower, London on 22 August 2012. The break clause allowed for termination of the lease upon satisfaction of various conditions, which were:
–– Payment of rent “up to and including” the break date
–– The tenant not being “materially in breach” of any of its covenants at the break date
