A break clause is a provision in a contract that allows one or both parties to terminate the agreement early under specified conditions, often after giving prior notice. This clause offers flexibility, enabling parties to exit the contract without facing significant penalties or legal repercussions.
Break Clause Notwithstanding anything to the contrary hereinbefore contained, the Landlord/Tenant either party shall be entitled to terminate this Agreement earlier than as herein provided by serving not less than _1_ months’ written notice or by paying _1_ months’ Rent in lieu to the Landlord/Tenant/other party provided that the said written notice shall not be served before the expiration of the _11_ month of the Term of Tenancy.
8. Tenant Break Clause 8.1 The Tenant may end the Term on the Break Date by giving the Landlord not less than six months’ written notice following which the Term will then end on the Break Date if: 8.1.1 on the Break Date the Main Rent and any VAT payable on the Main Rent due up to and including that Break Date have been paid in full; and 8.1.2 on the Break Date the whole of the Premises are given back to the Landlord free of the Tenant’s occupation and the occupation of any other lawful occupier and without any continuing underleases; and 8.1.3 the Tenant has, on or before the Break Date, caused to be paid to the Landlord an amount equal to three hundred thousand pounds (£300,000) (plus any VAT payable on that amount) and for this purpose the Tenant shall be entitled to pay the said amount to the bank account previously notified by the Landlord for payment of the Rent pursuant to clause 3.7, unless otherwise advised by the Landlord in writing to the Tenant before the payment is actually made, and where VAT payable is on that amount the Landlord 28 will provide the Tenant with a VAT invoice addressed to the Tenant as soon as is reasonably practicable thereafter. 8.2 The Landlord may waive any of the pre-conditions in clauses 8.1.1 to 8.1.3 at any time on or before the Break Date by notifying the Tenant. 8.3 If the Tenant gives notice to the Landlord under clause 8.1, the Tenant will on or before the Break Date make the payment to the Landlord as detailed in clause 8.1.3, provided that the Landlord will reimburse the said payment to the Tenant where the Lease does not end because either of the other pre-conditions have not been fulfilled (or waived by the Landlord). 8.4 If this Lease ends under this clause 8, this will not affect the rights of any party for any prior breach of an obligation in this Lease. 8.5 Time is of the essence for the purposes of this clause 8.
TENANT BREAK CLAUSE 8.1 Subject to the pre-conditions in clause 8.2 being satisfied, the Tenant may terminate this Lease on the Break Date by giving the Landlord not less than six months’ prior written notice. This Lease will then terminate on the Break Date but without prejudice to the rights of either party against the other for any antecedent breach. 8.2 The pre-conditions are that: 8.2.1 on the Break Date the Tenant returns the Premises to the Landlord free from the Tenant’s own occupation and that of any third party or the right to occupation of any third party whatsoever; and 8.2.2 both on the date of service of the notice and on the Break Date all Principal Yearly Rent and Reduced Rent has been paid in full. 8.3 Within 30 days from the date of such termination the Landlord will refund to the Tenant any Principal Yearly Rent or Reduced Rent which the Tenant has paid in advance for any period beyond the expiry of the notice.
8. BREAK CLAUSE 8.1.1 We may terminate this lease by written notice to you if at any time any rents or any other sums which have fallen due by you under the terms of this lease are unpaid 21 days after becoming payable, whether such sums have been demanded or not. 8.1.2 Following service of a notice under clause 8.2.1 this lease shall terminate on the date specified in the notice (the Break Date). 8.2.1 You may terminate this lease by serving a Break Notice (in the form annexed at Appendix 2) specifying a break date (the Break Date), provided that you may not serve a Break Notice more frequently than once in a 6 month period. 8.2.2 A Break Notice served by you shall be of no effect if, at the Break Date: (a) you have not given at least 3 months’ notice; (b) you have not paid any part of the Rent or any VAT in respect of it which was due to be paid; (c) the whole of the Property is not given back to us free of your occupation and the occupation of any other lawful occupier; (d) there is a subsisting material breach of any of the tenant covenants in this lease relating to the state of repair and condition of the Property, of which we have given you written notice not less than 2 months prior to the Break Date. 8.2.3 Subject to the foregoing, following service of a Break Notice this lease shall terminate on the Break Date. -24- 8.3 Termination of this lease on the Break Date shall not affect any other right or remedy that either party may have in relation to any earlier breach of this lease.
8 Break Clause 8.1 The Tenant may terminate the Contractual Term on Break Date 1 or Break Date 2 or Break Date 3 by giving to the Landlord not less than twelve (12) months' previous notice in writing; 8.2 Any notice given by the Tenant shall operate to terminate the Contractual Term only if: 8.2.1 the Principal Rent reserved by this lease has been paid by the time of such termination; and 8.2.2 the Tenant yields up the Property free from any subleases and other third party occupational interests on termination; 8.3 Upon termination the Contractual Term shall cease but without prejudice to any claim in respect of any prior breach of the obligations contained in this lease; 8.4 If the Tenant does not terminate the Contractual Term on Break Date 1 the Principal Rent shall be suspended from the date falling immediately after Break Date 1 for a period of seventy six (76) days, after which period the Tenant's obligation to pay the Principal Rent shall resume; 8.5 If the Tenant does not terminate the Contractual Term on Break Date 2 the Principal Rent shall be suspended from the date falling immediately after Break Date 2 for a period of seventy six (76) days, after which period the Tenant's obligation to pay the Principal Rent shall resume; 8.6 If the Tenant does not terminate the Contractual Term on Break Date 3 the Principal Rent shall be suspended from the date falling immediately after Break Date 3 for a period of seventy six (76) days, after which period the Tenant's obligation to pay the Principal Rent shall resume; 8.7 If the Tenant terminates this lease in accordance with this clause 8 the Landlord shall promptly reimburse the Tenant in respect of any sums received under this lease which relate to a period following termination of this lease. 8.8 Time shall be of the essence for the purposes of this Clause.
7.12 Break clause 7.12.1 The Tenant may subject to compliance with the provisions of this clause end the Term on the Break Date by giving to the Landlord not less than six months' prior written notice to that effect. lf notice is given under this clause the Term will end on the Break Date but without prejudice to any claim by either party against the other in respect of any antecedent breach of any covenant or condition in this Underlease. 7 .12.2 lt is a condition to the exercise of the right under this clause that: (a) on the Break Date there are no subsisting arrears of the Basic Rent; and 7.12.3 The Landlord shall within fifteen Working Days after termination of the Term repay to the tenant all sums prepaid by the Tenant in respect of the Basic Rent and insurance of the Property from but excluding the Break Date to and including the last day of the respective periods for which they were paid duly apportioned on a daily basis. 7.12.4 No rights of the nature in this clause will be included on renewal of this Underlease whether renewal is pursuant to a statutory right of the Tenant or otheruvise. 7.12.5 lf the Term does not end pursuant to the provisions of this clause 7.12 then the Basic Rent payable shall be a peppercorn (if demanded) from and including the Break Date to but excluding the date being four months after the Break Date.
6.14 Break Clause 6.14.1 In this clause the following definitions apply: Landlord Break Date: 24 March 2024. Break Notice: written notice to terminate this Lease. 6.14.2 The Landlord may terminate this Lease by serving a Break Notice on the Tenant at least nine months before the Landlord Break Date. 6.14.3 The Tenant may terminate this Lease by serving a Break Notice on the Landlord at any time giving at least six months’ notice of the intended date of termination (“Tenant Break Date”). 6.14.4 The Break Notice shall be in writing and, for the purposes of this clause, writing does not include facsimile transmission or email. 6.14.5 Following service of a Break Notice pursuant to clause 6.14.2 this Lease shall terminate on the Landlord Break Date. 6.14.6 Following service of a Break Notice pursuant to clause 6.14.3 this Lease shall terminate on the date specified in such Break Notice provided that the Tenant yields up the Demised Premises free from third party rights of occupation. 6.14.7 Time shall be of the essence in respect of all time periods and limits in this clause. 6.14.8 Termination of this Lease pursuant to this clause shall be without prejudice to any right or remedy of either party in respect of any antecedent breach of the covenants or conditions on the part of the other in this Lease, including any covenants expressed to be complied with before the end of the Term. 6.14.9 If this Lease terminates in accordance with this clause 6.14 within 14 days after the relevant break date the Landlord shall refund to the Tenant the proportion of the rents and any Value Added Tax payable in respect of them paid in advance by the Tenant for the period from and excluding the relevant break date up to and excluding the next quarter day calculated on a daily basis.
A break clause is a provision in a contract that allows one or both parties to terminate the agreement before the end of its term, without incurring a penalty. It is often found in property leases, but can also appear in various other types of contracts. The clause typically sets out specific conditions and notice periods that must be met in order to exercise the option to terminate early.
A break clause can be particularly useful in situations where there is uncertainty about future needs. For instance:
Writing a break clause involves several key elements:
The Tenant may terminate this Lease at the end of the third year by giving the Landlord no less than six months’ written notice. The notice must be sent via registered mail and should confirm that all rent and associated costs have been paid in full up to the date of termination. The Tenant must also ensure that the property is returned in good condition.
Break clauses are commonly found in various types of contracts, including but not limited to:
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