Break clauses

A break clause is a term in a lease which permits the Landlord or the Tenant to terminate a lease early. Break clauses are considered in detail in the Practice Note: Break options in commercial leases in Scotland which covers:

1. •

   who may exercise the break

2. •

   when may the break clause be exercised

3. •

   pre-conditions to exercising a break clause, and

4. •

   the effect on sub-leases

For examples of drafting in break clauses, see Precedents: Style clause—landlord break option to terminate lease—Scotland, Style clause—tenant break option to terminate lease—Scotland and Style clauses—mutual break option to terminate lease—Scotland and for guidance on exercising a break option, see: Exercising break clauses—Scotland—checklist.

Break notices

Break options are exercised by the service of a break notice. The requirements associated with the break notice including the form, the date for and mode of service and the identity of parties on whom service is to be affected are often detailed in the break clause. However, they may also be contained