Break Clause Law and Legal Definition

A break clause is a clause in a contract that allows a person to end the contract early. For example, a break clause can be included in a lease allowing either the landlord or the tenant to end the lease early. Generally, the right to break might be exercisable on one or more specific dates or at any time during the term on a rolling basis. Conditions if any, attached to the right to break must be strictly performed and time will be of the essence in respect of any time limits in the break clause. Generally, the break clause will state who can exercise the right to break. In the absence of any express terms to the contrary, the break will be exercisable by the original party to the lease and subsequent owners of either the landlord's or the tenant's interest. The break clause may also set out specific notice provisions stating how the break notice must be delivered to the other side and when it will be deemed to have been received.