What is a break clause, when should you exercise it, and under what circumstances?

Put simply, a break clause is a term in a contract that allows for the early termination of the contract prior to the agreed and scheduled end date of the contract. They are often found in commercial property leases and are now more desirable in some regards than ever before.

With many businesses suffering from the impacts of COVID-19, tenants and landlords may benefit from reviewing the terms of their lease to see whether they are able to determine their lease before the agreed end of term date.