It's Not You, It's the Break Clause: Sterling House v International Baccalaureate
Can a landlord stop a tenant from exercising a break clause by arguing they haven't met all the conditions? In this High Court decision, Sterling House Ltd v International Baccalaureate Organisation (UK) Ltd [2026] EWHC 2680 (BP), the landlord tried just that.
The court disagreed, finding that the tenant had successfully exercised its break option and brought the lease to an end. Although the law report runs to just six pages, it offers a useful reminder that break clauses live and die by their wording, and that not every alleged breach or technical issue will prevent a tenant from walking away.
In this Newsflash episode, Richard and Lizzie unpack the dispute, the court's reasoning, and the lessons for landlords, tenants and advisers dealing with break conditions.
Relevant cases:
Marks and Spencer plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd [2015]
Avocet Industrial Estates LLP v Merol Ltd [2011]
PCE Investors Ltd v Cancer Research UK [2012]
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