It is common where commercial leases contain rights to break in
favour of the tenant, that the terms of the lease will make those
rights conditional. One such common condition is the tenant has to
ensure that all rents due under the lease have been paid in full by
the break date.
Where the break date falls part way through a quarter, it has
long been settled law that on the quarterday immediately prior to
the break date, the full quarter's rent is payable and there is
no right to apportion and pay only the rent for the period prior to
the break date either under Common Law or under the Apportionment
Act 1870. This is galling for tenants who find themselves paying
for premises beyond a point in time when the lease has come to an
end, and it appears to be something of a windfall for landlords.
Unsurprisingly therefore, tenants have sought to argue in favour of
rights to recover overpaid rent after the lease has come to an end
by virtue of the operation of the break
