Break clauses are contractual provisions within commercial leases that allow a party to terminate the lease early.
Break clauses are common but are often complex and require the party serving the notice to do so within a specific time period. Sometimes there are conditions that must be met either prior to the notice being served or before the lease terminates.
The terms of the break clause must be strictly complied with and the effect of the break notice being incorrectly served, or the conditions not complied with, will mean that the lease will not terminate early and will continue for the remainder of the term.
The effect of the break notice being incorrectly served, or the conditions not complied with, will mean that the tenant’s obligations under the lease will continue.
We can assist you with the following:
- Advising commercial landlords on the validity of a break notice;
- Preparing and serving a break notice on behalf of commercial landlords or commercial tenants;
- Advising on any conditions attached to a break clause and how to comply with them; and
- Issuing proceedings should there be a dispute regarding the validity of a break notice or compliance with the break conditions.