Navigating Break Clauses In Commercial Leases: How To Avoid Breaking Bad

Exercising break clauses in commercial leases can often prove to be a legal minefield for any tenant (and, in some cases, a landlord) seeking to do so. Strict adherence to any conditions and notice requirements for the operation of the break will be paramount, as the Courts of England and Wales have historically taken a very strict interpretation against any failure to comply.

What are break clauses?

Break clauses are typically included in leases in order to allow the tenant or sometimes the landlord (and occasionally both parties) to terminate the lease prior to the natural end of its contractual term.

Compliance with conditions

In recent times, the Courts have tended to rule against a party who has failed to comply with the conditions attached to a break clause, so it is currently common practice for break clauses in commercial leases to be heavily negotiated (particularly on the tenant side) so as to contain as few conditions as possible, thereby making