Reed Personnel Services plc v American Express Ltd

  • Chancery Division
  • 24 January 1996
  • Jacob J
  • [1997] 1 EGLR 229
Landlord and tenant -- Break clause -- Whether underlessee reasonably performed and observed the covenants -- Whether pre-condition to determination of underlease satisfied

By an underlease dated March 17 1989 the plaintiff granted the defendant tenants an underlease of business premises at a rent of £120,000 pa, subject to a tenant's option to determine. The defendants covenanted to repair the interior and to redecorate during the last six months of the term. The break clause was conditional on the tenants reasonably performing and observing the covenants of the underlease. By two letters dated December 22 1992 and January 2

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