A break clause is a term in a contract that allows early termination of the contract before the default end date. In accordance with English property law, such clauses are typical in tenancy agreements, so as to allow a tenancy to come to an end before the end date stated in the agreement.

What does break clause mean?

A break clause is a provision in a lease which enables either the landlord or the tenant, or both, to end the lease early. In today's challenging economic climate tenants are cutting back their businesses or looking to re-negotiate more favourable lease terms, and are choosing to exercise their break options.

What is a 12 month contract with a 6 month break clause?

Break clauses are typically inserted at the middle point of a contract. For example, a 12-month long contract would have a break clause at the six-month point, allowing the renter or the landlord to end the AST after six months instead of 12.