World431_DM_04

MGR Real Estate Inc. ("MGR") and "AI Automation Group, LLC" ("AIAG") entered into a letter of intent (“LOI”) on December 2, 2025 for 2020 Main Street, Irvine, CA (the "Building"). The letter included estimates for common area expenses for the first year of the lease term at $10 per square foot. However, it misstated the total square footage as 1,500.

The first full year in which AIAG was obligated to pay its share of common area expenses was 2026. MGR invoiced AIAG $150,000 for common area expe...

No. AIAG is not likely to sustain its argument. It cannot sustain a viable claim for fraud as AIAG’s reliance upon the estimate was unreasonable (a required element in the fraud analysis). Because the undisputed facts leave no room for a difference of interpretation regarding the parties’ intent, the fraud exception to the parol evidence rule is not triggered. Accordingly, AIAG is bound by the terms of the written agreement and cannot leverage the fraud exception to the parol evidence rule.