A fixed term. Can your tenancy end early?

You sign a fixed-term tenancy for three years and spend money getting the premises ready. Before making that commitment, check what the agreement says about ending the tenancy early, as well as the rent and expiry date.

Ending a fixed-term tenancy early

In UEM Land Berhad v Mohd Khalid Mohd Noor [2026] 3 MLRA 611, UEM ended a three-year grass-farming tenancy following a corruption investigation. The High Court found no proof that the tenant had participated in wrongdoing with UEM’s deputy general manager.

The tenant won in the High Court, which treated early termination as requiring the tenant’s breach. However, the Court of Appeal allowed UEM’s appeal on 19 February 2026.

The agreement provided two ways to end the tenancy:

• Clause 6: listed failures, including a breach not corrected after seven days’ written notice.
• Clause 15: either party could give three months’ written notice; the landlord need not pay compensation for using this right.

Clause 15 expressly applied despite the other terms. The Court of Appeal therefore treated it separately from clause 6. UEM had given the required notice; it did not need to prove breach, give reasons or obtain the tenant’s agreement.

The court accepted that termination was the landlord’s decision alone. The tenant’s signature—whether agreeing or simply confirming receipt—did not change the result.

What should landlords and tenants take away?

1. Read the early termination clause before signing.

Ask for a clear explanation of when each party can end the tenancy and what steps must be taken. If you need the premises for a particular period, raise that requirement during negotiations and ask for it to be recorded clearly.

2. Work out what an early move would cost.

For a tenant, list the money you plan to spend on renovation, equipment and setting up the business. Consider how much of that spending you could recover if you had to move earlier than expected. A longer notice period, a guaranteed minimum period or an agreed payment towards those costs may be worth negotiating.

For a landlord, consider the time needed to find another tenant, the rent that may be lost and the work needed to put the premises back into the agreed condition. Address those matters in the agreement before a dispute arises.

3. Check the notice against the agreement.

Before sending a termination letter, check the clause you intend to use, the required notice period, the proposed end date and how the notice must be delivered. Keep a copy of the letter and evidence of delivery.

If you receive a notice, bring the signed agreement and the full correspondence for review. Explain what you dispute and any approaching deadline. This helps identify the issue that needs attention before you decide how to respond.

4. Keep the financial arrangements clear.

Discuss the deposit, unpaid rent, renovation work and removal of equipment when preparing the tenancy. Record who is responsible for each item and when payment or work must be completed. Clear arrangements give both parties something practical to refer to when the tenancy ends.

If you are preparing a tenancy agreement or have received an early termination notice, reviewing the terms can help you understand your options before taking the next step.

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