Tenant's break clause fixed break date (long form)

by Practical Law Property

A standard clause that provides landlord-focused drafting for a tenant's fixed break right in a commercial lease. This standard clause allows a tenant to terminate its lease on one or more specified break dates and can be adapted to make the right personal to the original tenant or exercisable by its successors. The clause establishes a clear framework for exercising the break, detailing the necessary form and content of the break notice and the specific methods of service, which operate independently of the lease's general notice provisions and section 196 of the Law of Property Act 1925. It sets out several strict conditions that a tenant must satisfy for the break to be effective, including the payment of annual rent, the delivery of vacant possession, and compliance with covenants relating to the property's state of repair. The clause also contains an optional provision for the refund of rent paid for any period after the break date, reflecting the principles established in Marks and Spencer plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd and another [2015] UKSC 72. This standard clause includes a pro-forma break notice.