More Pitfalls in Break Clauses

It is quite common knowledge that for many break clauses to be effective, the whole of the quarter’s rent should be paid even if the break occurs mid-quarter.

What may not be such common knowledge is that if there is no specific allowance in the break clause, the tenant may not be entitled to any refund of rents that could be apportioned after the break date.

If the break clause is silent on the apportionment of rent which straddles the break date, one suggestion is that when making payment, the tenant should reserve their right to recover rent for the period after the break date in the hope that they can reclaim it back once the break has been successfully exercised.

Brendan Joyce Partner