The lease contains a tenant’s break clause which allows the tenant, subject to its compliance with certain conditions, to terminate the lease on a specified date. Rent is payable by instalments quarterly in advance on the usual quarter days. The specified date for the termination of the lease is in the middle of a quarter. On the quarter day before the specified date, the tenant is obliged to, and does, pay a full quarter’s rent as an instalment of rent. The lease ended on the specified date. Was the tenant entitled to be repaid a part of the quarter’s rent which he had paid, the relevant part being based on a daily apportionment of the quarter’s rent in relation to the part of the quarter which is after the specified date?
Held: the claimant was so entitled to be refunded a sum equal to the apportioned Basic Rent in respect of the period 24 January 2012 (when the Lease expired) and 25 March 2012, given that the claimant had paid the Basic Rent (in the sum of pounds 309,172.25 plus VAT) on 25 December 2011 in respect of that period even though the Lease had expired on 24 January 2012.
Morgan J
[2013] EWHC 1279 (Ch)
Bailii
England and Wales
Cited by:
At ChD – Marks and Spencer Plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd and Another CA 14-May-2014
The court considered the operation of a break clause within a lease, and in particular ‘ Can the court imply a term which enables the lessee to get back that part of the advance payment of rent which relates to a period (‘the broken period’) after . .
At ChD – Marks and Spencer Plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd and Another SC 2-Dec-2015
The Court considered whether, on exercising a break clause in a lease, the tenant was entitled to recover rent paid in advance.
Held: The appeal failed. The Court of Appeal had imposed what was established law. The test for whether a clause . .
Lists of cited by and citing cases may be incomplete.
Updated: 30 October 2021; Ref: scu.509271
