Break clause: implied term for M&S
The High Court delivered a controversial judgment on 16 May 2013 in the case of Marks and Spencer Plc v BNP Paribas Security Services Trust Company (Jersey) Ltd and Another.
Marks and Spencer (M&S) was the tenant under four leases of an office building in Paddington. The leases were all in the same form. Briefly, the relevant terms were: the leases were granted for a term starting on 25 January 2006, expiring on 2 February 2018; rent was payable quarterly in advance on the usual quarter days; the leases contained break clauses allowing M&S to terminate the leases on 24 January 2012 (the break date); and the breaks were conditional on there being no arrears of rent or VAT at the break date and the payment of a year’s rent (being a substantial sum) on or before the break date.
M&S served notice to break the leases and paid the full quarter due in advance on 25 December 2011. M&S also paid the penalty amount of one year’s rent and so it satisfied the break conditions…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.