The Hotgroup Plc -v- RBS, 2010

United Kingdom: Operating break clauses in commercial leases

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The operation of break clauses in commercial leases has proved a fertile ground for legal disputes between landlords and tenants and this is particularly so during downturns in the market, as landlords seek to retain tenants' liability for rents and other charges under their leases. In The Hotgroup Plc -v- RBS, the tenant failed to serve a copy of the notice to break the lease on the landlord's agent, as required by the lease. The landlord disputed the validity of the notice to bring the lease to an end. The case provides another valuable lesson as to the importance of reading and complying with all of the terms of the lease in connection with the operation of a break clause.

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Reference Info:n/a | United Kingdom

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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