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Break clause - strict interpretation Print

Here is another example of the strict way in which the courts will apply a break clause (and why it is essential to fully comply with the requirements). In this case, T served his break notice, but L argued that it had not been received in time. The lease contained deemed service provisions in respect of notices given by hand or sent by recorded/special delivery, but a notice sent in any other way was valid only when receipt was acknowledged. T’s problem was that the break notice was sent by fax, and accordingly the court held that it was not validly served until L had acknowledged receipt (which L did after the time limit for service). Accordingly, T could not exercise the break clause – even though he had sent his fax in time. The point, of course, is that break clauses are applied strictly, with the requirements usually being construed as pre-conditions that must be complied with. ?Orchard v Reuters [2009] EWCA Civ 6 (access free at www.practicalconveyancing.co.uk).

October 2009
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