Avoiding a messy break: Canonical UK Ltd v TST Millbank LLC
Given the present state of the economy, it is reasonable to assume that 2013 will see a continuation of businesses attempting to restructure their liabilities in order to stay afloat.
Leasehold premises often represent the heaviest of those liabilities and many tenants will look at exercising lease break clauses to rid themselves of surplus or financially draining properties. Equally, with a glut of properties on the market, landlords will not want to lose any rental income and will be looking for ways to ensure that their tenants stay at the premises as long as possible. The validity of break clauses has therefore provided the battle ground for these competing interests, with the courts mainly ruling in the landlord’s favour…
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