Break Clauses Uncovered - Avoiding the Traps

Break Clauses Uncovered - Avoiding the Traps


21 Jun 2024

10:30 AM ‐ 12:30 PM

With a SmartPlan £144

With a Season Ticket £160

Standard price £320

All prices exclude VAT
Intermediate: Requires some prior subject knowledge
2 hours
Group bookings
email us to discuss discounts for 5+ delegates


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 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 a lease, having to pay rent for a building the tenant wanted to get rid of. In the case of a landlord's break, failure to exercise the break clause successfully might mean that a valuable redevelopment cannot proceed as planned, or that the landlord's other plans are disrupted.

This virtual classroom seminar 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 and examining how to get it right.

What You Will Learn

This live and interactive session will cover the following:

  • Types of break clause - landlord's, tenant's, mutual breaks
  • Landlord's breaks - interaction with the 1954 Act
  • Lease Code - what does that say about break clauses?
  • 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 - why they are best avoided
  • 'Full' compliance versus 'material' compliance with conditions
  • Repairs and dilapidations in a break clause scenario
  • What the tenant should leave behind and what they must take with them
  • 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 the tenant get a rent repayment if they have overpaid?

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.