Business break clause

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    Business break clause

    The tenant would like to add the following clause, is it reasonable?

    "1 year contract with a 6 month business break clause- two months notice to be given if the occupants get relocated out of the UK."

    Thank you.

    #2
    Originally posted by marywong828 View Post
    "1 year contract with a 6 month business break clause- two months notice to be given if the occupants get relocated out of the UK."

    Thank you.
    Is that specific? A break clause ONLY if they get relocated outside UK?
    I offer no guarantee that anything I say is correct. wysiwyg

    Comment


      #3
      The tenant is a staff of an international firm. So he may get relocated outside UK when the contract expired. However the contract is 2 years. The agent said this is a standard clause for relocation staff. As I'm not living in UK, I don't know if this is correct.

      Comment


        #4
        That is a case of 'Have your cake and eat it'.

        The only person that could lose on this is you, I would expand the clause to make them pay your costs of re-letting IF they use the break clause for this purpose.
        I offer no guarantee that anything I say is correct. wysiwyg

        Comment


          #5
          Originally posted by marywong828 View Post
          The agent said this is a standard clause for relocation staff.
          Now, why am I not surprised?! It is in the agent's interests to pretend to produce a tenant for you for two years, only to charge you re-advertising fees, new tenancy find fee, etc when that tenant leaves after only six months.

          The chances are that if a large firm is relocating someone abroad, that firm can afford to pay off the rest of their employee's rent commitment in the UK, or at least the first year's rent.

          I agree with jta, I don't see how you can benefit from this. A better compromise would be that you let for a fixed term of 12 months, with the option to renew for a second 12 months if you and T are happy to do so. Or even a fixed term of 12 months, followed by a statutory periodic tenancy (ie rolling month to month) which would not incur any more LA fees. The T would however only have to give you one months notice to quit - you'd need to give him two).
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

          Comment


            #6
            Thanks both of you. That's a good idea.

            Comment


              #7
              "1 year contract with a 6 month business break clause- two months notice to be given if the occupants get relocated out of the UK."

              The above is arguably void for uncertainty.

              1. "Break clause" and "right to break" are confused.

              2. Is the minimum term 6 or 8 months?

              3. Who has the right is not specified.

              4. "Relocated" is not defined.

              5. At what point is the relocation deemed to take place?

              6. The clause refers to the occupants and not the tenants being relocated.

              7. Giving notice appears to be compulsory if the occupant is relocated.

              8. What is a "business" break clause as opposed to any other sort of break clause?

              Comment

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