What can lead to a misrepresentation by an agent?

The correct choice highlights a situation where an agent provides false information that misleads a third party into making a decision based on that incorrect information. This behavior constitutes misrepresentation because it involves a deliberate act of conveying falsehoods or inaccuracies that can affect the other party's transactional choices.

In agency law, the agent has a duty to act in good faith and provide complete and truthful information. When an agent intentionally misleads through false statements, it not only runs counter to this duty but can also result in legal consequences, as the third party may suffer damages due to relying on that misinformation.

The other scenarios differ in that they do not inherently involve the provision of false information that leads to misrepresentation. For instance, providing accurate information is aligned with the agent's responsibilities. Refusing to disclose relevant information to the principal may breach the agent’s fiduciary duty but does not directly involve misrepresenting facts to a third party. Similarly, misinterpreting the principal's wishes may reflect a misunderstanding or lack of communication but does not equate to intentionally misleading someone. Thus, the focus on delivering false information directly relates to the definition of misrepresentation in the context of agency law.