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Do you remember the Marks and Spencer Plc v BNP Paribas case last year? M&S had a break right which was conditional on there being no arrears at the break date (as well as paying a financial penalty). Having paid the full quarter’s rents to exercise the break right, the judge implied a term that the landlord must reimburse the tenant for all advance payments (about £1.1m in total).
Perhaps not surprisingly, this decision has today been overturned by the Court of Appeal. No such term is to be implied and the loss must lie where it falls. It is therefore crucial when acting for a tenant with a break clause to provide expressly in the heads of terms and lease that, following the exercise of the break clause, the landlord must reimburse the tenant for all overpayments. Draft with care!
A convenience retailer has opted to install cameras (the “Facewatch” system) at a limited number of its English stores to reduce crime and protect its staff.
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The Government appears set to announce plans on ‘living with Covid to restore freedom’. With the success of the retail and hospitality sector key to recovery, what protections will be on offer to tenants to deal with Covid-19 rent arrears?
Break rights have proved a fertile source of litigation over the last few years. More often than not, tenants have found themselves on the wrong end of the decisions. However, a Court of Appeal decision yesterday has bucked that trend.
One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease.
Partner and Head of Real Estate
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