Which of the following statements is true about misrepresentation?

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The statement regarding misrepresentation being able to occur through both false statements and omissions is accurate. Misrepresentation refers to providing false information or failing to disclose relevant information that could affect another party's decision-making. When someone makes a misrepresentation, it can be in the form of overtly false statements or through the failure to mention critical information that should have been disclosed. This means that both acts of commission (making an untrue statement) and acts of omission (failing to provide necessary details) can lead to misrepresentation, thereby making option C the correct choice.

Misrepresentation does not inherently always lead to a criminal charge, nor does it require intentionality for it to be actionable. For instance, negligent misrepresentation can occur without intent to deceive, and certain omissions may also be considered misleading, thus making option C more comprehensive in covering the nuances of misrepresentation. Additionally, it is directly related to the validity of a contract since misrepresentation can provide grounds for rescission or damages, which clarifies why option D is incorrect.

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