Break Clauses - Avoiding the Traps
Break clauses are an extremely common feature in commercial leases and a very fertile source of litigation. There have been numerous cases over the past few years, including four major cases in 2016 alone, which show how very easy it is to get things wrong.
There are drastic consequences if a break clause is not exercised correctly, as the lease will continue.
This could mean that the tenant is tied into several more years of his lease, having to pay rent for a building he wanted to get rid of. In the case of a landlord, failure to get his break clause right might mean that a valuable redevelopment cannot proceed as planned.
This webinar will look at how to avoid the traps associated with break clauses, referring to recent case law for real life examples of what can go wrong.
The webinar will also discuss the practical implications of recent high profile cases relating to break clauses.
What You Will Learn
This webinar will cover the following:
- Types of break clause
- Drafting a break clause - avoiding problems later on
- Cautionary tales from recent case law
- Serving the break notice - getting it right in form and substance, and on whom do you serve it?
- When is a break clause not a break clause?
- Conditional break clauses
- 'Full' compliance versus 'material' compliance
- Repairs and dilapidations in a break clause scenario
- What to leave behind and what to take with you
- Keys and alarm codes - don't get caught out
- The 'vacant possession' trap
- Breaks part way through a quarter - the apportionment trap - what must the tenant pay?
- Can you get a repayment if you've overpaid?