Opinion

Quitting the premises? Don't leave the builders behind

Apart from employees, the second largest fixed cost businesses tend to face relates to their premises. That's why it's all the more important that businesses understand and abide by break clauses that give them a valuable 'get-out' on their leased property.

So what happens when a tenant does what they think is the right thing by serving notice appropriately, is up to date with their rent and then - even when there is no requirement to - employs contractors to repair the premises to prevent a dilapidation claim from the landlord? 

Well nothing adverse if everyone - tenant and contractor - is offsite and the property is vacant by the appropriate date.

But where the tenant is offsite and the contractor overstays then the break submitted by the tenant can be ruled invalid and the contract left in force until the next break comes along.

The warning to others comes from the case of NYK Logistics (UK) Limited v iBrend Estates BV.

This was first published in August 2011

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