📘 Contract Management – 100 MCQs

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1. A contract is:
   A. Informal agreement
   B. Legally enforceable agreement
   C. Payment
   D. Audit
   Answer: B
2. Essential elements of a valid contract include:
   A. Offer
   B. Acceptance
   C. Consideration
   D. All
   Answer: D
3. Consideration means:
   A. Payment
   B. Value exchanged
   C. Profit
   D. Audit
   Answer: B
4. Contract becomes valid when:
   A. Offer made
   B. Acceptance given
   C. Consideration present
   D. All
   Answer: D
5. Railway contracts must be:
   A. Oral
   B. Written
   C. Optional
   D. None
   Answer: B
6. Contract management ensures:
   A. Execution
   B. Control
   C. Compliance
   D. All
   Answer: D
7. Breach of contract means:
   A. Performance
   B. Non-performance
   C. Profit
   D. None
   Answer: B
8. Liquidated damages are:
   A. Profit
   B. Pre-determined compensation
   C. Audit
   D. None
   Answer: B
9. Contract period is:
   A. Time for execution
   B. Payment
   C. Audit
   D. None
   Answer: A
10. Contractor is:
    A. Employer
    B. Party executing work
    C. Auditor
    D. None
    Answer: B

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26. Agreement must be signed by:
    A. Authorized person
    B. Anyone
    C. Auditor
    D. None
    Answer: A
27. Contract value determines:
    A. Authority
    B. Payment
    C. Audit
    D. None
    Answer: A
28. Variation in contract requires:
    A. Approval
    B. Ignoring
    C. Audit
    D. None
    Answer: A
29. Performance guarantee ensures:
    A. Completion
    B. Profit
    C. Audit
    D. None
    Answer: A
30. Contract terms include:
    A. Scope
    B. Time
    C. Cost
    D. All
    Answer: D
31. Delay in contract leads to:
    A. Penalty
    B. Profit
    C. Audit
    D. None
    Answer: A
32. Contract monitoring ensures:
    A. Progress
    B. Delay
    C. Loss
    D. None
    Answer: A
33. Measurement book records:
    A. Work done
    B. Payment
    C. Audit
    D. None
    Answer: A
34. Payment is made based on:
    A. Work completed
    B. Estimate
    C. Audit
    D. None
    Answer: A
35. Contract closure requires:
    A. Completion
    B. Payment
    C. Certification
    D. All
    Answer: D

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51. Contract ₹10 lakh, completed ₹8 lakh →
    A. Full payment
    B. ₹8 lakh payment
    C. No payment
    D. None
    Answer: B
52. Contract delay penalty ₹1 lakh →
    A. Add
    B. Deduct
    C. Ignore
    D. None
    Answer: B
53. Contract ₹20 lakh, variation ₹5 lakh → total =
    A. ₹20 lakh
    B. ₹25 lakh
    C. ₹15 lakh
    D. None
    Answer: B
54. Performance guarantee ₹2 lakh, failure →
    A. Refund
    B. Forfeit
    C. Ignore
    D. None
    Answer: B
55. Work completed 50%, contract ₹10 lakh → payment =
    A. ₹5 lakh
    B. ₹10 lakh
    C. ₹2 lakh
    D. None
    Answer: A
56. Delay 10 days, penalty ₹10,000/day →
    A. ₹1 lakh
    B. ₹10,000
    C. ₹10 lakh
    D. None
    Answer: A
57. Contract ₹15 lakh, paid ₹16 lakh →
    A. Excess ₹1 lakh
    B. Saving
    C. Profit
    D. None
    Answer: A
58. Variation without approval →
    A. Valid
    B. Irregular
    C. Profit
    D. None
    Answer: B
59. Contract ₹12 lakh, penalty ₹2 lakh → net =
    A. ₹12 lakh
    B. ₹10 lakh
    C. ₹2 lakh
    D. None
    Answer: B
60. Advance payment ₹5 lakh, work ₹3 lakh →
    A. Excess ₹2 lakh
    B. Saving
    C. Profit
    D. None
    Answer: A

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76. Contract management ensures:
    A. Control
    B. Compliance
    C. Efficiency
    D. All
    Answer: D
77. Railway contracts follow:
    A. Rules
    B. Codes
    C. Procedures
    D. All
    Answer: D
78. Contract irregularity leads to:
    A. Audit objection
    B. Profit
    C. Loss
    D. None
    Answer: A
79. Contract monitoring ensures:
    A. Timely completion
    B. Delay
    C. Loss
    D. None
    Answer: A
80. Payment must be:
    A. Authorized
    B. Verified
    C. Recorded
    D. All
    Answer: D
81. Contract execution requires:
    A. Planning
    B. Monitoring
    C. Control
    D. All
    Answer: D
82. Railway contract system ensures:
    A. Transparency
    B. Accountability
    C. Control
    D. All
    Answer: D
83. Performance guarantee ensures:
    A. Completion
    B. Profit
    C. Loss
    D. None
    Answer: A
84. Contract variation must be:
    A. Approved
    B. Ignored
    C. Deleted
    D. None
    Answer: A
85. Contract closure ensures:
    A. Completion
    B. Payment
    C. Certification
    D. All
    Answer: D
86. Contract audit checks:
    A. Legality
    B. Accuracy
    C. Compliance
    D. All
    Answer: D
87. Railway accounts ensure:
    A. Control
    B. Audit
    C. Compliance
    D. All
    Answer: D
88. Contract breach leads to:
    A. Penalty
    B. Profit
    C. Loss
    D. None
    Answer: A
89. Financial discipline requires:
    A. Contract control
    B. Audit
    C. Budget
    D. None
    Answer: A
90. Contract system ensures:
    A. Efficiency
    B. Control
    C. Accountability
    D. All
    Answer: D
91. Contract value determines:
    A. Authority
    B. Control
    C. Audit
    D. All
    Answer: D
92. Railway finance depends on:
    A. Contract
    B. Audit
    C. Budget
    D. All
    Answer: D
93. Contract irregularity impacts:
    A. Audit
    B. Control
    C. Reporting
    D. All
    Answer: D
94. Contract terms must be:
    A. Clear
    B. Complete
    C. Enforceable
    D. All
    Answer: D
95. Contract execution ensures:
    A. Work completion
    B. Payment
    C. Control
    D. All
    Answer: D
96. Contract monitoring avoids:
    A. Delay
    B. Loss
    C. Misuse
    D. All
    Answer: D
97. Railway contracts ensure:
    A. Value for money
    B. Profit
    C. Loss
    D. None
    Answer: A
98. Contract system ensures:
    A. Transparency
    B. Accountability
    C. Control
    D. All
    Answer: D
99. Contract management is part of:
    A. Financial management
    B. Audit
    C. Ledger
    D. None
    Answer: A
100. Contract management ensures:
     A. Discipline
     B. Control
     C. Efficiency
     D. All
     Answer: D