Material compliance and conditional break clauses: some implications for practice

Abstract

Purpose

The purpose of this research is to examine the awareness and understanding of break clause management by small business tenants in the light of the Appeal Court decision in Fitzroy House Epworth Street (No. 1) Ltd and another v. The Financial Times Ltd [2006].

Design/methodology/approach

The empirical data were collected using detailed questionnaires distributed to occupational tenants in three sub‐markets across the West Midlands. The questionnaire incorporated Likert‐scale and close‐response questions.

Findings

The general conclusions were that the tenants surveyed were dangerously unaware of the barriers that exist in trying to effect break clauses, a position exacerbated by the decision in Fitzroy.

Practical implications

The research points to an increasing need for tenants to be made more aware of the technical and management problems that surround the option to determine clause.

Originality/value

The paper offers an applied examination in an important aspect of contemporary lease management. It provides a platform on which to base further studies in other geographical areas for comparative and aggregate purposes.

Citation

Mansfield, J.R. and Robinson, J.S. (2007), "Material compliance and conditional break clauses: some implications for practice", Structural Survey, Vol. 25 No. 2, pp. 117-126. https://doi.org/10.1108/02630800710747690