How does 'misrepresentation' manifest in the context of agency?

Misrepresentation in the context of agency primarily refers to the act of providing false information about a property. This can occur intentionally or unintentionally and can significantly impact the decision-making process of the parties involved in a real estate transaction. Real estate agents have a fiduciary duty to represent their client's interests truthfully and transparently. When an agent misrepresents information—such as the condition of a property, its value, or any legal encumbrances—they not only jeopardize the trust inherent in the agency relationship but can also expose themselves and their clients to legal liability.

Accurate and honest representation is crucial in maintaining the integrity of transactions and ensuring that all parties make informed decisions. When misrepresentation happens, it can lead to disputes, financial loss, and damage to reputations within the industry. Thus, option C correctly encapsulates how misrepresentation is understood in agency law.