Marks & Spencer Lose Key Property Case

04-01-2016

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In a recent Supreme Court decision, M&S have lost a case concerning a term which they asked the Court to imply into a lease. 

A break clause is a provision contained in a lease which allows the Landlord or Tenant to terminate the Lease before the expiry of the fixed term.

This case concerned M&S’s flagship office at The Point, Paddington, London. In 2011, M&S exercised the break clause in their Lease, meaning that the Lease would terminate on 24 January 2012.

On 25 December 2011, M&S paid their full rent, even though the Lease was to terminate a month later.

M&S then started Court proceedings to recover the rent the believed they had over-paid. M&S argued that a term allowing repayment of rent should be implied into the Lease.

The Court robustly rejected M&S's argument and said that such a term was not required to make the contract workable. The Court found that without the implied term, the Contract was commercially and practically coherent.

The Court's ruling will provide certainty for Landlords and Tenants in relation to the issue of repaying rent at the end of the Lease.

Samuels Solicitors is a niche litigation practice, based in Devon but with a national client base. We have a wealth of experience dealing with property disputes between tenants and landlords. 

We provide flexible funding arrangements to clients with strong cases, which can include conditional (no win no fee) arrangements if appropriate.

Contact us for a free no obligation discussion about how we can assist you with your property dispute. 

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