Break options and notices

A lease may include an option for one or both parties to end the lease before the contractual expiry date. This is known as a break option or break clause.

Time is of the essence in respect of all steps to be taken in exercise of a break option, unless the lease expressly states to the contrary.

See Practice Notes: Break clauses and notices—service and Break clauses and notices—exercising breaks and conditions precedent.

Who may exercise the break?

In practice, most leases will provide whether the break is exercisable by the landlord or the tenant, or if the right is mutual to both parties.

In the case of a tenant, unless there is any indication in the lease to the contrary, the break option will be exercisable by the party in whom the term is for the time being legally vested.

For Precedents, see: Tenant's break notice and Landlord's notice to break whole of fixed term.

When may the break clause be exercised?

The break option may be exercisable:

•
on one or more fixed dates
•
at any

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