9 July 2010 by

Repent at leisure

While break clauses in leases are a subject that we have addressed previously, a recent case highlighted the importance of not only complying with any preconditions set out in a lease but also considering the lease as a whole and, in particular, the not so obvious issues.

In this case a tenant purported to exercise a break clause in a lease, and it is believed complied with the preconditions, but omitted to note a requirement set out in another section of the lease, dealing with the service of notices, that to be effective any notice served on the landlord must also be served on the landlord’s agent.

The tenant served the notice on the landlord within the required time period but, too late, discovered the requirement that the notice needed to be also served on the agent and attempted to serve the notice out of time.

The break notice was held by the court to be ineffective. This was catastrophic for the tenant who remained liable to the landlord for the remainder of the term of the lease.

What is the lesson to be learned from this? Well, whether you are a landlord or a tenant, review the whole lease to establish whether the break provisions have been complied with or, better still, instruct a solicitor to advise you.

After all if you are a landlord it may be advantageous to hold your tenant to a lease if a break notice is in fact defective and if you are a tenant the legal fees for professional advice will be insignificant compared with the costs if you are mistaken and held to your lease for the remainder of the term.

4 June 2010 by Matthew Miller

Bribery Act 2010

As a result of the enactment of the Bribery Act 2010 on 9 April 2010, in the public and private sectors, it is now an offence for any UK person or business, operating in the UK or aboard.

1 July 2010 by Vincent Billings

Shareholders protecting your position – Shareholders Agreements for minority and majority shareholders

Whether you are a minority shareholder or a majority shareholder in a company, an issue to consider at an early stage is how to contractually protect your position within the company.

Signup To Our Weekly e-News

"*" indicates required fields

We’ll never share your details with any third party in line with our privacy policy.