Break Notices in Commercial Leases: Drafting, Compliance & Case Law [2025]

Topics covered include:

1. Introduction

• Welcome & Objectives: What attendees will learn.
• Why This Matters: The financial and legal consequences of getting a break notice wrong.

2. What Is a Break Notice?

• Definition & Purpose: The right to terminate a lease early.
• Key Lease Provisions to Consider:
  • Break date(s) and notice period
  • Service provisions
  • Conditions attached to the break

3. Conditional vs. Unconditional Breaks

A. Unconditional Breaks

• Simpler to operate – no preconditions apart from valid notice service.

B. Conditional Breaks

• Common Conditions:
  • Payment of rent and sums due
  • Giving up vacant possession
  • Compliance with repairing obligations
  • No material breaches of the lease
• Pitfalls & Risk of Invalid Breaks
  • Strict compliance requirements
  • What constitutes "vacant possession"?
  • The impact of dilapidations disputes
• Landlord Challenges to Break Notices
  • Case law on strict compliance

4. Drafting & Serving a Break Notice

• Key Considerations:
  • Clarity of wording
  • Addressing the correct recipient
  • Timing and method of service
• Common Drafting Errors & How to Avoid Them
• Service Provisions & Importance of Lease Review
  • Notices clause and deemed service rules
  • Recorded delivery vs. personal service

5. Key Case Law & Lessons Learned

• Mannai Investment Co Ltd v Eagle Star Assurance Co Ltd (1997) – The importance of precise wording.
• Avocet Industrial Estates LLP v Merol Ltd (2011) – Strict compliance with conditions.
• Capitol Park Leeds plc v Global Radio Services Ltd (2021) – Vacant possession issues.
• Siemens Hearing Instruments Ltd v Friends Life Ltd (2014) – The impact of unpaid sums on break validity.
• Recent updates on case law

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