Cracking conditional break clause conundrum will be Pyrrhic victory

摘要

Try to explain the law of break clauses to the uninitiated. And take a deep breath before explaining it to a tenant. The latest case of Avocet Industrial Estates v Merol and Another (professional, 03.02.12) does not help. The judge's ruling, while accurately reflecting the law, would make even a municipal parking warden cry out for some rule bending, and raises the question: should the law be changed? The facts of the Avocet case will make many a real estate professional shudder. A tenant with a conditional break clause wanted to end its lease and served valid notice on its landlord. For the break to work, there were preconditions that needed to be satisfied on the break date. These included requirement for any payment due underthe lease, including a substantial break premium, to be paid up in full on or before the break date.