Scenario: Mr$.$ Smith

You are a student looking to sublet an apartment for the summer while you're interning in a different city. You find a listing online for a cozy studio apartment that fits your budget perfectly. You contact the landlord, Mr$.$ Smith, and after some negotiation, you agree on a monthly rent of $$800,$ with a security deposit of $$1000.$

However, when you arrive at the apartment to sign the lease and move in$,$ you notice that the apartment is not as described in the listing. It's smaller than advertised, and some amenities mentioned, like a gym and a swimming pool, are nowhere to be found. You bring this up to Mr$.$ Smith, who apologizes and promises to make it right. He reassures you that he'll fix everything and even offers to lower the rent to $$700$ per month to compensate for the discrepancies.

Feeling relieved, you sign the lease and move in$.$ However, a few weeks later, you discover that Mr$.$ Smith has charged you the original agreed$-$upon rent of $$800$ per month instead of the promised $$700.$ When you confront him about this, he denies ever agreeing to lower the rent and insists that you must pay the full amount.

You realize that Mr$.$ Smith misled you during the negotiation by promising a lower rent to make up for the shortcomings of the apartment but then reneging on that promise after you signed the lease.

Question:

Is it acceptable for Mr$.$ Smith to engage in this kind of fraud during negotiation? Why or why not? What is the legal characterization of Mr$.$ Smith