Break clauses and notices—exercising breaks and conditions precedent
Break clauses and notices—exercising breaks and conditions precedent

The following Property Disputes guidance note provides comprehensive and up to date legal information covering:

  • Break clauses and notices—exercising breaks and conditions precedent
  • What is a break clause?
  • When may the break clause be exercised?
  • Time of the essence of the break clause
  • Meaning of ‘year’, ‘month’ and the ‘corresponding date rule’
  • Interpretation of common deadlines
  • Compliance with break clause requirements
  • Example break clauses
  • Mannai—contractual notices
  • Mannai—statutory notices
  • more

This Practice Note explains, in the context of both residential and business leases, what a break clause is, when it may be exercised (including interpretation of common deadlines for when to serve a break notice and the meaning of ‘year’, ‘month’ and ‘corresponding date rule’) and the form of a break notice. It covers case law in respect of errors in compliance with break notice requirements, in particular the reasonable recipient test under Mannai, and its application to common types of error. It covers the application of Mannai to service of statutory notices and the different types of error that are commonly made, namely completion errors and form errors. It also considers what happens when a mistake in a break notice is spotted (including serving another notice without prejudice to the validity of the first and/or arguments that validity issues have been waived), and whether or not a break notice can be withdrawn or waived and the effects of withdrawal or waiver, including the potential loss of covenants. It also covers compliance with conditions precedent (pre-conditions), including reasonable, material and absolute compliance and provides guidance in respect of common break condition precedents including the requirement to provide vacant possession and payment of rent.

For more information in respect of by and upon which party the break notice must be served, method of