• Shergroup

Brexit Frustration | Not Enough to Exit a Lease

We can only imagine that people up and down the rock which is called the United Kingdom (which is technically made of a number of rocks) are fed up with Brexit.  So, a case caught our eye which made us smile regarding a large agency trying to exit a 25-year lease based on Article 50 being invoked.  Firstly, we were surprised to see that 25-year leases were still being signed – sorry but we don’t think that’s the smartest business move – and then smiled again to read that Brexit is a reason to exit the lease!  Nice try – but the law of contract and in particular the topic of frustrating a contract is well rehearsed in this link – http://bit.ly/2XlsnhN

We think this is important because obviously all sorts of organisations could start to look at business obligations based on Brexit and try to side-step their responsibilities.  Readers may note that the position is in flux and as the finality of the Brexit decision gets closer, it may be that Brexit becomes a reason that the Court accepts can frustrate a contract.

For the moment it isn’t but watch this space!  For everyone else landlords can continue to forfeit a lease or obtain an Order over commercial premises which we will of course happily enforce.


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