Leeds & Manchester Seminars – Break Clauses – An Update


The need for strict compliance with conditions for exercise of a break clause.

In Legal & General Assurance Company Ltd v Expeditors International (UK) Ltd [2007] 2 P&CR 10, Lord Justice Lloyd stated:

“In general, conditions attached to a break clause, as with any other option provision, must be strictly complied with, so that even a day’s delay in giving vacant possession or a shortfall in the payment of rent of a few pounds would be fatal”.

The recent cases on break clauses have done nothing to undermine this principle. As Lord Justice Lewison observed in April of last year in Siemens Hearing Instruments Ltd v Friends Life Ltd [2014] EWCA Civ 382:

“If you want to avoid expensive litigation, and the possible loss of a valuable right to break, you must pay close attention to all the requirements of the clause … and follow them precisely”.

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