Break Clauses, sometimes also known as Break Notices, are provisions written into a commercial property lease that allows a landlord or tenant to terminate the lease part way through the term. This is usually at one or more fixed points in time (for example, eighteen months and three years through a five-year lease).

Whilst serving Break Notices are a common practice, they require careful consideration at the negotiation stage of the lease and at the point of being exercised. This is because there are often strict requirements in the lease that must be followed to the absolute letter in order to serve a valid Break Notice. Failure to do so will mean that the Break Notice is invalid and the lease will continue, either until the end of the term or until the next break date.

When taking into account rent and business rates, the cost of getting a Break Notice wrong can run into tens of thousands of pounds. Tenants may be keen for early termination of the lease by exercising a Break Clause whilst landlords will be scrutinising the lease to see whether there is valid service, particularly if it will be difficult to find a replacement tenant.