Break Clauses: Rigour not reasonableness

Christopher Morris sets out the current position on advanced payment apportionments and the law of implied contractual terms ‘The decision in M&S has had a tangible effect on property law and real estate practice.’ Just over a year on from the Supreme Court’s decision in Marks & Spencer plc v BNP Paribas Securities Services Trust …
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Break Clauses: The letter of the law

Darrell Chiheb reviews a case clarifying the position on break clauses, which reasserts the importance of express over implied terms ‘While it may be tempting for a court to construe an instrument by the inclusion of implied terms to make it fairer or more reasonable, the court will use this power in only exceptional circumstances.’ …
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Contract: Something for everyone

Mark Lawrence and Jonathan Pratt investigate recent Supreme Court guidance on break rights and implied terms ‘All five members of the Supreme Court were clear that… a term can only be implied into a contract where it is necessary to make that contract work. This should, therefore, be the starting point for anyone involved in …
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Break Clauses: Breaking up is hard to do – part 3

Dan Cuthbert outlines where the recent decisions in Game and M&S leave apportionment of rent ‘Both the M&S and the Game appeal are good news for landlords. Tenants will find it increasingly difficult to argue that they should recover rent for any period after the exercise of a break date.’ Over the last two years, …
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Administration Issues: A bloom-ing marvellous decision?

Rebecca Nash explains the background to the recent decision in Bloom and what it means for landlords ‘Before Goldacre, the law seemed quite easy to understand and apply. Many commentators felt it was also fair to both landlords and tenants.’ The Supreme Court’s decision in Bloom v The Pensions Regulator [2013], better known as Nortel …
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Apportionment Of Rent: Breaking up is hard to do – part 2

Dan Cuthbert assesses the problem with Ellis v Rowbotham in the light of a recent decision ‘Morgan J concluded that a reasonable person reading the lease would expect that in a case where the break clause was operated to take effect on 24 January 2012 that the rent would be payable for the term to …
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Administration: A question of timing

The recent decision in Luminar has confirmed that where rent is due prior to the date of an administration, it will not be an expense. Mark Reading analyses the court’s findings ‘Administrators will continue to delay putting a company into administration until after a quarter day, where the quarter day is imminent, in order to …
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Apportionment And Breaks: Breaking up is hard to do

Daniel Cuthbert discusses the vexed issue of apportionment of rent following the exercise of a break clause It may be possible to argue that a term should be implied, that rent is paid for the period of occupation only and that any overpayment caused by early termination ought to be repaid. Recent case law suggests …
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