Commercial Lease – Break Clause

break clause

Breaking A Clause

How do you break clause in a commercial lease agreement?  If you need to end a commercial lease early, a commercial property solicitor can view the clause in the agreement.  Some clauses make provisions for certain eventualities, including the early termination of a tenancy.

Breaking Free From A Fixed Term

Once a tenancy begins, business may suffer a downturn.  A business location affected by social and economic issues, it will result in poor revenue.  The business may prove to be unfeasible.  Carefully check your tenancy agreement.  Is it subjected to a fixed term?  Property solicitors are able to identify aspects of a term clause that allows for early termination of the tenancy.

In relation to fixed term tenancies, a landlord may have given prior consent in certain circumstances.  For instance, the tenant could be allowed to break free from a contract with the landlord earlier than stipulated by the term in the tenancy agreement.

Are You Compliant?

Before exercising a break clause, you need to consult with a property solicitor in order to comply with the requirements set out by the landlord.  Remember  that the landlord is entitled to collect rent until a new tenant leases the property.  So if you are contemplating breaking a lease, consider doing so with minimal or no penalties.

First Step When Breaking A Clause

Before you break a clause, read carefully the Breach of Contract or Early Termination section of the commercial lease agreement.  Your landlord may actually be sympathetic and make allowances but you need to seek legal advice.  Give us a call and allow one of our property solicitors to liaise and negotiate with the landlord on your behalf.  SG


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