Avocet Industrial Estates LLP v Merol Ltd [2011] EWHC 3422 (Ch) – Law Journals

Break Clauses: The letter of the law

Darrell Chiheb reviews a case clarifying the position on break clauses, which reasserts the importance of express over implied terms ‘While it may be tempting for a court to construe an instrument by the inclusion of implied terms to make it fairer or more reasonable, the court will use this power in only exceptional circumstances.’ …

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Break Clauses: Tenants take note

Although the recent decision in Siemens Hearing appears to provide comfort to tenants whose break notices do not comply with the lease terms, Vanessa Babington argues that caution is still required ‘With an economic climate making many landlords eager to frustrate a tenant’s break, if anything, the judgment should act as a reminder of the …

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Lease Break Clauses: What could possibly go wrong?

Jon Dickins rounds up recent case law on the vexed issue of interpreting break clauses Recent cases have demonstrated that the courts will tend to side with the landlord if the tenant has not complied strictly with the wording of a break clause. Life is full of uncertainty and, in a competitive commercial property market, …

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Apportionment And Breaks: Breaking up is hard to do

Daniel Cuthbert discusses the vexed issue of apportionment of rent following the exercise of a break clause It may be possible to argue that a term should be implied, that rent is paid for the period of occupation only and that any overpayment caused by early termination ought to be repaid. Recent case law suggests …

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Lease Break Options: Heading for certain breakdown

Marie-Louise Gobbi investigates recent judicial interpretation of lease break options ‘In the difficult economic climate of recent years, many tenants have sought to extricate themselves from lengthy lease terms.’I started researching this article with the assumption that it would be a fairly standard round-up of recent cases concerning the tricky operation of lease break options. …

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Tenant: Give me a break!

Alan Morris reviews the courts’ rigorous approach to the interpretation of break clause conditions and calls for a more pragmatic approach going forward ‘It is common for a break clause to be conditional upon performance by the tenant of its covenants under the lease. Consequently, any subsisting breach of covenant on the part of the …

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Case Round Up

Paul Tonkin provides an overview of recent case law Break notice invalid where interest on late rent outstanding Avocet Industrial Estates LLP v Merol Ltd [2011] Merol was Avocet’s tenant of commercial premises under a lease that included a break option. The break option provided that the break notice would be of no effect if …

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Commercial Lease Breaks: Give me a break

Neil Ham considers the decision in Avocet and its broader consequences for landlords and tenants ‘If equality and fairness prevail, break conditions will either be absent or, more commonly, provide that at the break date the basic annual rent will be up to date and the premises vacant.’ The exercise of a break right by …

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Break Clauses: A change to the landscape?

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Jeremy Steele reviews the decision in Avocet and its implications for landlords and tenants ‘The reason for there having been so much litigation is simple: landlords who have received break notices are left with the uncomfortable prospect of vacant units in a market in which new tenants are difficult to find.’ The law reports over …

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