Break clauses and notices—exercising breaks and conditions precedent

The following Property Disputes practice 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...

Break clauses and notices—exercising breaks and conditions precedent

Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been introduced, which affect the following:

  1. proceedings for possession

  2. forfeiture of business leases on the grounds of non-payment of rent

  3. a landlord's right to exercise Commercial Rent Arrears Recovery (CRAR) and enforcement agents taking control of goods

  4. service of various notices to recover possession of residential properties

  5. practice and procedure in the First-tier Tribunal (Property Chamber) and Upper Tribunal (Lands Chamber)

  6. insolvency legislation of both a permanent and temporary nature

For further information and guidance, see: Coronavirus (COVID-19)—implications for property.

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

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