Does a breach of an obligation in an agreement for lease allow the tenant to refuse to complete the lease?
A tenant who does not want to be forced to complete a lease if an obligation in the agreement for lease is breached must provide expressly for this in the agreement.
A tenant who does not want to be forced to complete a lease if an obligation in the agreement for lease is breached must provide expressly for this in the agreement.
In a recent case, the agreement for lease prevented the landlord from making variations to the landlord’s works (the construction of student accommodation) which materially affected the size of the rooms. The agreement provided that a size reduction of more than 3% from the original drawings was deemed material. In contravention of this provision, the landlord built some rooms which were more than 3% smaller.
The Court of Appeal decided that although the parties could spell out exactly what type of breach would allow the tenant to terminate an agreement, that was not what the parties had done here and it would not make commercial sense if any breach of the agreed size tolerance level (e.g. an undersized bin store) automatically allowed the tenant to terminate the agreement.
In this case, the tenant is possibly facing the unpalatable prospect of having to complete a long lease of student accommodation with 56 rooms smaller than specified.
It makes sense to agree at heads of terms stage what breaches will give rise to termination so that both parties are clear from the outset and this can then be built into the agreement for lease.
Contact
David Harris
Professional Development Lawyer
david.harris@brownejacobson.com
+44 (0)115 934 2019
Related expertise
You may be interested in...
In Person Event
Medical negligence and report writing foundation course: Autumn 2025
Legal Update
The Orgreave public inquiry: Background and significance
Legal Update
Merton-compliant age assessments: Social worker guidance
Press Release
Browne Jacobson comments on Sizewell C final go-ahead from government
Legal Update
Violence against shop workers and scam claims: Legal implications and practical advice
Press Release
DWP calls on Browne Jacobson to support in procurement after awarding new contract
Press Release
Browne Jacobson supports Welsh Government with key investments into Morlais tidal power project
Legal Update
Consultation on the new School Support Staff Negotiating Body
Guide
KCSiE 2025 guidance: What schools need to know
Legal Update
What does the 10-year health plan mean for social care?
Legal Update
Unveiling the hidden pitfalls in IT contracts
Legal Update - Employment Rights Bill
The Employment Rights Bill: Is it here yet?
Legal Update
June 2025: A busy month for kinship care
Legal Update
CJC review of litigation funding in England and Wales: Key findings and analysis
Legal Update
A new planning bill for Wales: What will this mean?
Legal Update
PuFin takes flight: Homes England launches new bank
Opinion
Pride Month: A time to review DEI
Guide
Legal project management: A cornerstone in operational delivery of inquiries
Legal Update
Navigating legal realties for new councillors
Legal Update
Analysis: National audit on group-based child sexual exploitation and abuse (June 2025)
Press Release
Browne Jacobson comments on the government's 10 year infrastructure strategy
Opinion
Employer redundancy guide: Sourcing alternative employment
Guide
Recovering insurance commission payments: tenant considerations post-Trocadero v Picturehouse
Press Release - Firm news
Browne Jacobson delivers record-breaking growth as strategic vision drives exceptional performance
Legal Update
What might the public inquiry on child sexual exploitation look like
Opinion
Spending Review: Setting the stage for UK investment
Guide
Using AI for recruitment: The data issues
On-Demand
Nuclear PSG webinar: Conflict avoidance on major projects
Press Release
Spending Review 2025: Browne Jacobson lawyers respond to Chancellor’s announcement
Legal Update
ESG and sustainability report: Rethinking communication and credibility
Press Release
Majority of UK organisations remain committed to sustainability and ESG, says new research
Legal Update
Producing robust capacity assessments and the approaches to assessing capacity
Legal Update - Public matters newsletter
Public matters: May 2025
Legal Update
Ireland’s first Consumer Representative Action issued in the High Court
Legal Update
Is the standards regime about to undergo a significant overhaul?
Video
Investigations and inquiries into child sexual exploitation and grooming
Legal Update
Navigating the streets: The legal landscape of low traffic neighbourhoods
Legal Update - Planning reform
All change: The implications of planning reform upon regeneration projects
Legal Update
Supporting local authorities in tackling housing challenges
