Assignment task: Steven owns a hotel in Perth. Due to the imposition of border closures and lockdowns over the last two (2) years, there has been a sharp drop in the tourism and hospitality sectors. As such, Steven has entered into a written agreement to allow Ruby the use of part of the hotel foyer. To save money, Steven asked his daughter, a law student, to draft the agreement for him. The one age agreement is entitled 'Lease'. Ruby is permitted to operate a florist shop from 1 February 2022 paying weekly rental of $200.
The agreement allows Ruby to cordon off a space of 15 square metres in a corner of the foyer to display her flowers. As there is no means of securing entry to the 15 square metres, she also has the 'sole and exclusive use' of a room nearby to store her items, including her cash register, after she closes the business at 5pm.
Last week Ruby was offered a good price by Isla for her florist business. Ruby is keen to assign the interest but Steven has told her that their arrangement only gives rise to a personal interest which cannot be assigned. Steven is keen to sign a new agreement with Isla for a higher rent.
Using the four-step process, advise Ruby whether this agreement creates a lease or a licence. N.B. You are not required to consider the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) or the Residential Tenancies Act 1987 (WA).