Break clause update

Abstract

Landlord and tenant matters are possibly one of the most litigious areas of contract law in the UK, with break clause operations being particularly fought over, and there have been numerous cases involving break clauses over the past few years. Given the continued political and economic uncertainty surrounding the UK’s decision to leave the European Union, break clauses are once again at the top of many landlords’ and tenants’ agendas. This paper reviews some of the key case law that has arisen since the original paper published in 2012, and in particular within the last year. It discusses cases concerning what constitutes vacant possession, as opposed to abandonment, and how seemingly minor infractions can result in failure of the break operation. Among other items, the paper looks at how partitioning left within one office, which the tenant claimed was an alteration, was in fact held to be tenant’s chattels.