Ambiguous break clause?

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    Ambiguous break clause?

    Hello all,

    We have a break clause in a rental agreement that is possibly ambiguous, so I'm after a few opinions on how it reads. Having now read up on break clauses, I can see that it's poorly worded, but for the time being this is what we have:

    "It is hereby agreed and understood that the Landlord may bring this agreement to an end by giving the tenant not less than TWO MONTHS written notice, subject to a minimum term of SIX MONTHS. After this minimum term, notice may be given at anytime."

    It also contains the same clause for tenant notice and ONE MONTH.

    Does this mean notice can be served such that the minimum rental term is 6 months [eg. tenant gives notice after 5 months, landlord after 4 months] or that neither party can give notice until after the 6 months.

    Thanks in advance!

    #2
    Originally posted by surkey View Post
    Hello all,

    We have a break clause in a rental agreement that is possibly ambiguous, so I'm after a few opinions on how it reads. Having now read up on break clauses, I can see that it's poorly worded, but for the time being this is what we have:

    "It is hereby agreed and understood that the Landlord may bring this agreement to an end by giving the tenant not less than TWO MONTHS written notice, subject to a minimum term of SIX MONTHS. After this minimum term, notice may be given at anytime."

    It also contains the same clause for tenant notice and ONE MONTH.

    Does this mean notice can be served such that the minimum rental term is 6 months [eg. tenant gives notice after 5 months, landlord after 4 months] or that neither party can give notice until after the 6 months.

    Thanks in advance!
    I have always understood it to mean LL can give two months notice in the 4th month and tenant one month notice in the 5th month - taking note of the expiry date of the 6mo break clause.
    ASSUME NOTHING - QUESTION EVERYTHING!

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      #3
      Originally posted by surkey View Post
      "It is hereby agreed and understood that the Landlord may bring this agreement to an end by giving the tenant not less than TWO MONTHS written notice, subject to a minimum term of SIX MONTHS. After this minimum term, notice may be given at anytime."

      It also contains the same clause for tenant notice and ONE MONTH.
      I read it as follows:
      1. Tenancy must run for at least six months.
      2. L can give two months' Notice to T at any point after first four months of term.
      3. T can give one month's Notice to L at any point after first five months of term.

      Paragon's take is that Notices can be given only in a defined month- but that misses the effect of the 'anytime'.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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        #4
        What (in effect) is the difference between this and a standard six month AST?
        Now signature free.

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          #5
          Originally posted by lorenzo View Post
          What (in effect) is the difference between this and a standard six month AST?
          Not a lot, except that its provisions will apply [unchanged] for twelve months unless it's terminated early.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment

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