Rent recovery after exercising a break clause – New Square Chambers

Posted November 5th, 2013 in contracts, landlord & tenant, leases, news, rent by sally

“A tenant’s option to determine a commercial lease (a ‘break clause’) is a common feature of the modern landlord and tenant relationship. As a result of the weak economy and the ability of tenants to determine unilaterally an unfavourable lease on terms, there have recently been a number of reported decisions concerning the disputed exercise of break clauses. The typical interests in conflict have been described in Canonical UK Ltd v TST Millbank LLC [2012] EWHC 3710 (Ch) by Vos J (para 3): ‘This is a hard case for both sides. The tenant company … needs to know if it has successfully broken the lease because its future business depends on using its resources elsewhere. The landlord in these poor economic times seeks to use any argument it properly can to keep its building tenanted.'”

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New Square Chambers, 31st October 2013