Exercising and challenging break options in Scottish commercial leases—practitioner checklist: parties, notices, service, timing, preconditions, VAT, inter naturalia, withdrawal

Published by a LexisNexis Property expert

Checklists

What is a break clause?

A lease granted for a fixed term may include a provision enabling one party, or both, to end the lease before it naturally expires. This is referred to as a break clause or break option. It permits the landlord and/or the tenant to terminate early on a set date or when a specified event occurs. Such clauses provide the benefiting party with flexibility, for example to react to shifting market conditions. A break option is exercised by serving a break notice. The clause will often spell out what that notice must contain and how it must be given, including:

the required form, timing and any stated conditions for service,
the method of service, and
the identity of the parties who must be served.

These points may instead appear in a general notice provision in the lease, or in both places. See further: Contents of clause: Stair’s Laws of Scotland (Stair Memorial Encyclopaedia).

Who may exercise the break clause?

If the lease does not specify which party may operate the break right, either party may do so, as the lease is a bilateral contract...

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Kenneth S Gerber

Mitchells Roberton

Ken joined Mitchells Roberton in 2019. He was previously a partner for 12 years at Anderson Strathern, and before that he was a partner at Kidstons.Ken handles landlord and tenant law, site assembly, property development, property financing, property purchase and sale and the property aspects of corporate transactions.He is accredited by the Law Society of Scotland as a specialist in commercial leasing law. He regularly speaks on a range of commercial property subjects at conferences for MBL Seminars, as well as for other providers, and has presented online lectures for The Law Society of Scotland and University of Glasgow. Kenneth wrote the course on commercial conveyancing for the postgraduate Law Diploma at Glasgow University, and is senior tutor on that course. He also regularly provides specialist legal opinions to other firms on commercial lease matters....

Web page updated on 01/06/2026

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