Definitions for "Break Clause"
A clause in a lease agreement giving the landlord or tenant or both the right, under specified circumstances, to terminate the agreement, before its normal end date.
Sometimes the landlord will grant a clause in the Formal Tenancy Agreement allowing the tenant to give early notice after a specified period of occupation of the premises. The standard arrangement is for a two-year lease with a two (or three) month "break clause" after twelve (or fifteen) months. This means that, after twelve months of the lease, the tenant can give the landlord not less than two months' written notice of his intention to leave the premises. The advantage to the tenant is that the amount of the rent is guaranteed for two years although he may leave the premises after fourteen months.
A clause used in a lease that gives the landlord and or the tenant the right in specified circumstances to terminate the lease prior to it's normal expiry date. It usually defines the length of notice and may be subject to contractual or statutory financial provisions.