Commercial property update

Magnus Hassett, James Noble and Amy France consider break clauses and vacant possession, uncompleted leases, superior landlord's consent and occupiers' liability

07 Nov 2011

Vacant possession

The operation of break clauses in leases remains a fruitful source of potential disputes. Tenants looking to bring their leases to an end may find themselves up against landlords who, in a difficult letting market, try to find reasons to keep their tenants on the hook. From a tenant’s point of view, strict compliance with any conditions attached to a break option remains essential.

A condition that is often attached to the exercise of a tenant’s break is the giving of vacant possession. The Court of Appeal has recently again made it clear that, in order for such a break option to be effective, a tenant must strictly comply with such an obligation.

The case of NYK Logistics (...

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