Business lease – break clause – condition precedent – compliance with lease obligations – no material breach

Mourant Property Trust Limited v Fusion Electronic (UK) Limited [2009] EWHC 3659 (Ch) (Mr B Livesey QC Sitting as a deputy judge of the High Court – 30 July 2009)

A break clause is often invaluable to a tenant because it creates flexibility. Often the tenant will have paid for the benefit of such a clause by an increase in the rent otherwise payable. In the present market tenants may be looking to exercise break options for a variety of reasons, including the escape from what is perceived to be an onerous obligation. In order to exercise what are sometimes hard fought and expensive rights, tenants must ensure full compliance with all conditions precedent, as this case illustrates.