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✅Penalties & Debarment + Indian Contract Act, 1872 (100 MCQs)

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1. A contract is defined under Section:
   A) 2(a)
   B) 2(h)
   C) 10
   D) 73
   Answer: B
2. An agreement enforceable by law is called:
   A) Promise
   B) Contract
   C) Offer
   D) Proposal
   Answer: B
3. Proposal is defined under:
   A) Sec 2(a)
   B) Sec 2(b)
   C) Sec 10
   D) Sec 73
   Answer: A
4. Acceptance is defined under:
   A) Sec 2(a)
   B) Sec 2(b)
   C) Sec 2(c)
   D) Sec 10
   Answer: B
5. Consideration is defined under:
   A) Sec 2(d)
   B) Sec 2(e)
   C) Sec 10
   D) Sec 73
   Answer: A
6. Void agreement is defined under:
   A) Sec 2(g)
   B) Sec 2(h)
   C) Sec 10
   D) Sec 73
   Answer: A
7. Voidable contract is defined under:
   A) Sec 2(i)
   B) Sec 2(g)
   C) Sec 10
   D) Sec 73
   Answer: A
8. Essentials of valid contract include:
   A) Agreement + enforceability
   B) Offer only
   C) Acceptance only
   D) Writing only
   Answer: A
9. Free consent includes:
   A) Coercion
   B) Undue influence
   C) Absence of coercion
   D) Fraud
   Answer: C
10. Competency to contract is defined under:
    A) Sec 10
    B) Sec 11
    C) Sec 12
    D) Sec 73
    Answer: B
11. Minor’s agreement is:
    A) Valid
    B) Void
    C) Voidable
    D) Illegal
    Answer: B
12. Consideration must be:
    A) Past only
    B) Present only
    C) Lawful
    D) Monetary only
    Answer: C
13. Agreement without consideration is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
14. Consent is defined under:
    A) Sec 13
    B) Sec 14
    C) Sec 10
    D) Sec 73
    Answer: A
15. Free consent is defined under:
    A) Sec 13
    B) Sec 14
    C) Sec 11
    D) Sec 10
    Answer: B
16. Coercion is defined under:
    A) Sec 15
    B) Sec 16
    C) Sec 17
    D) Sec 18
    Answer: A
17. Undue influence is under:
    A) Sec 15
    B) Sec 16
    C) Sec 17
    D) Sec 18
    Answer: B
18. Fraud is defined under:
    A) Sec 17
    B) Sec 18
    C) Sec 19
    D) Sec 20
    Answer: A
19. Misrepresentation is under:
    A) Sec 18
    B) Sec 17
    C) Sec 19
    D) Sec 20
    Answer: A
20. Mistake is covered under:
    A) Sec 20–22
    B) Sec 10
    C) Sec 15
    D) Sec 73
    Answer: A
21. Lawful object is required under:
    A) Sec 23
    B) Sec 24
    C) Sec 10
    D) Sec 73
    Answer: A
22. Agreement opposed to public policy is:
    A) Valid
    B) Void
    C) Voidable
    D) Illegal
    Answer: B
23. Wagering agreements are:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
24. Contingent contract is defined under:
    A) Sec 31
    B) Sec 32
    C) Sec 10
    D) Sec 73
    Answer: A
25. Performance of contract is under:
    A) Sec 37
    B) Sec 10
    C) Sec 73
    D) Sec 2
    Answer: A

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26. Breach of contract leads to:
    A) Performance
    B) Remedy
    C) Discharge
    D) All
    Answer: D
27. Compensation for breach is under:
    A) Sec 73
    B) Sec 74
    C) Sec 75
    D) Sec 10
    Answer: A
28. Liquidated damages are covered under:
    A) Sec 73
    B) Sec 74
    C) Sec 75
    D) Sec 10
    Answer: B
29. Penalty clause is under:
    A) Sec 74
    B) Sec 73
    C) Sec 75
    D) Sec 10
    Answer: A
30. Quantum meruit means:
    A) Equal payment
    B) Reasonable payment
    C) Fixed payment
    D) Bonus
    Answer: B
31. Anticipatory breach occurs:
    A) After due date
    B) Before due date
    C) During performance
    D) After completion
    Answer: B
32. Actual breach occurs:
    A) Before performance
    B) At due date
    C) After termination
    D) Before agreement
    Answer: B
33. Specific performance is:
    A) Compensation
    B) Court order to perform
    C) Penalty
    D) Arbitration
    Answer: B
34. Rescission means:
    A) Continuation
    B) Cancellation
    C) Performance
    D) Payment
    Answer: B
35. Injunction is:
    A) Order to perform
    B) Order to stop
    C) Compensation
    D) Penalty
    Answer: B
36. Damages must be:
    A) Remote
    B) Direct
    C) Speculative
    D) Arbitrary
    Answer: B
37. Remote damages are:
    A) Recoverable
    B) Not recoverable
    C) Mandatory
    D) Fixed
    Answer: B
38. Mitigation of damages means:
    A) Increase loss
    B) Reduce loss
    C) Ignore loss
    D) Transfer loss
    Answer: B
39. Contract discharged by impossibility is under:
    A) Sec 56
    B) Sec 73
    C) Sec 74
    D) Sec 10
    Answer: A
40. Frustration of contract leads to:
    A) Continuation
    B) Discharge
    C) Penalty
    D) Payment
    Answer: B
41. Novation means:
    A) Cancellation
    B) Substitution
    C) Performance
    D) Delay
    Answer: B
42. Alteration of contract requires:
    A) One party
    B) Mutual consent
    C) Court order
    D) Arbitration
    Answer: B
43. Waiver means:
    A) Enforcement
    B) Abandonment of rights
    C) Penalty
    D) Payment
    Answer: B
44. Remission is:
    A) Increase obligation
    B) Reduction of obligation
    C) Cancellation
    D) Payment
    Answer: B
45. Breach gives right to:
    A) Compensation
    B) Performance
    C) Both
    D) None
    Answer: C
46. Damages aim to:
    A) Punish
    B) Compensate
    C) Reward
    D) Delay
    Answer: B
47. Exemplary damages are:
    A) Punitive
    B) Compensatory
    C) Nominal
    D) Liquidated
    Answer: A
48. Nominal damages are:
    A) High
    B) Small
    C) Punitive
    D) Fixed
    Answer: B
49. Consequential damages are:
    A) Direct
    B) Indirect
    C) Nominal
    D) Fixed
    Answer: B
50. Breach of warranty gives:
    A) Rejection
    B) Damages
    C) Specific performance
    D) Cancellation
    Answer: B

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51. Debarment means:
    A) Promotion
    B) Blacklisting
    C) Payment
    D) Audit
    Answer: B
52. Debarment is imposed for:
    A) Good performance
    B) Misconduct
    C) Audit
    D) Payment
    Answer: B
53. Blacklisting affects:
    A) One contract
    B) Future participation
    C) Payment
    D) Audit
    Answer: B
54. Grounds for debarment include:
    A) Transparency
    B) Fraud
    C) Efficiency
    D) Audit
    Answer: B
55. Debarment must follow:
    A) Secrecy
    B) Due process
    C) Delay
    D) Bias
    Answer: B
56. Show cause notice is issued before:
    A) Payment
    B) Debarment
    C) Audit
    D) Delivery
    Answer: B
57. Natural justice requires:
    A) No hearing
    B) Opportunity to be heard
    C) Delay
    D) Bias
    Answer: B
58. Debarment period is:
    A) Permanent always
    B) Time-bound
    C) One day
    D) Optional
    Answer: B
59. Fraud includes:
    A) Transparency
    B) Misrepresentation
    C) Audit
    D) Compliance
    Answer: B
60. Corrupt practice includes:
    A) Bribery
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
61. Collusion means:
    A) Competition
    B) Secret agreement
    C) Audit
    D) Compliance
    Answer: B
62. Coercive practice includes:
    A) Threat
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
63. Unfair practice leads to:
    A) Reward
    B) Penalty
    C) Promotion
    D) Audit
    Answer: B
64. Debarment list is maintained by:
    A) Supplier
    B) Authority
    C) Court
    D) Audit
    Answer: B
65. Cross-debarment means:
    A) Same authority
    B) Multiple agencies
    C) Single contract
    D) Audit
    Answer: B
66. Debarment decision must be:
    A) Arbitrary
    B) Reasoned
    C) Biased
    D) Secret
    Answer: B
67. Appeal against debarment lies with:
    A) Supplier
    B) Higher authority
    C) Audit
    D) Court only
    Answer: B
68. Suspension differs from debarment as:
    A) Permanent
    B) Temporary
    C) Same
    D) Illegal
    Answer: B
69. Penalty clause ensures:
    A) Delay
    B) Compliance
    C) Bias
    D) Secrecy
    Answer: B
70. Liquidated damages are:
    A) Reward
    B) Pre-estimated loss
    C) Penalty
    D) Bonus
    Answer: B
71. Performance guarantee ensures:
    A) Payment
    B) Contract performance
    C) Audit
    D) Delivery
    Answer: B
72. Forfeiture of security is:
    A) Reward
    B) Penalty
    C) Payment
    D) Audit
    Answer: B
73. Debarment affects:
    A) Past contracts
    B) Future contracts
    C) Payment
    D) Audit
    Answer: B
74. Procurement penalties ensure:
    A) Compliance
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
75. Debarment promotes:
    A) Corruption
    B) Discipline
    C) Delay
    D) Bias
    Answer: B

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76. Contract of indemnity is under:
    A) Sec 124
    B) Sec 125
    C) Sec 126
    D) Sec 73
    Answer: A
77. Contract of guarantee is under:
    A) Sec 126
    B) Sec 124
    C) Sec 125
    D) Sec 73
    Answer: A
78. Bailment is under:
    A) Sec 148
    B) Sec 149
    C) Sec 150
    D) Sec 151
    Answer: A
79. Finder of goods has rights of:
    A) Bailee
    B) Bailor
    C) Owner
    D) Agent
    Answer: A
80. Agency is under:
    A) Sec 182
    B) Sec 183
    C) Sec 184
    D) Sec 185
    Answer: A
81. Agent binds:
    A) Himself
    B) Principal
    C) Third party
    D) Court
    Answer: B
82. Ratification relates to:
    A) Past act approval
    B) Future act
    C) Present act
    D) Court order
    Answer: A
83. Sub-agent is appointed by:
    A) Principal
    B) Agent
    C) Court
    D) Third party
    Answer: B
84. Consideration may move from:
    A) Promisee only
    B) Any person
    C) Promisor only
    D) Court
    Answer: B
85. Privity of contract applies to:
    A) Third party
    B) Parties only
    C) Court
    D) Agent
    Answer: B
86. Agreement in restraint of trade is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
87. Agreement in restraint of marriage is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
88. Agreement in restraint of legal proceedings is:
    A) Valid
    B) Void
    C) Illegal
    D) Enforceable
    Answer: B
89. Time is essence of contract when:
    A) Mentioned
    B) Not mentioned
    C) Ignored
    D) Arbitrary
    Answer: A
90. Reciprocal promises are under:
    A) Sec 51
    B) Sec 52
    C) Sec 53
    D) Sec 54
    Answer: A
91. Joint liability is under:
    A) Sec 42
    B) Sec 43
    C) Sec 44
    D) Sec 45
    Answer: B
92. Discharge by agreement includes:
    A) Novation
    B) Alteration
    C) Rescission
    D) All
    Answer: D
93. Quasi contracts are:
    A) Real contracts
    B) Implied by law
    C) Void
    D) Illegal
    Answer: B
94. Supply of necessaries to minor is:
    A) Void
    B) Recoverable
    C) Illegal
    D) Enforceable
    Answer: B
95. Finder of lost goods can:
    A) Sue owner
    B) Retain goods
    C) Sell goods
    D) All
    Answer: D
96. Agency terminates by:
    A) Death
    B) Insanity
    C) Completion
    D) All
    Answer: D
97. Consideration must not be:
    A) Lawful
    B) Illegal
    C) Valuable
    D) Real
    Answer: B
98. Agreement without free consent is:
    A) Valid
    B) Voidable
    C) Illegal
    D) Enforceable
    Answer: B
99. Contract becomes void when:
    A) Impossible
    B) Valid
    C) Enforceable
    D) Binding
    Answer: A
100. Indian Contract Act, 1872 governs:
     A) Criminal law
     B) Civil obligations
     C) Tax law
     D) Property law
     Answer: B

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April 10, 2026

CPD, CPD-1 (Paper-1), Public Procurement

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✅ Transparency and Professionalism in Public Procurement (100 MCQs)

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1. Transparency in procurement ensures:
   A) Secrecy
   B) Openness and fairness
   C) Delay
   D) Monopoly
   Answer: B
2. Transparency reduces:
   A) Competition
   B) Corruption
   C) Efficiency
   D) Accountability
   Answer: B
3. Disclosure of procurement information promotes:
   A) Bias
   B) Trust
   C) Monopoly
   D) Delay
   Answer: B
4. Transparency requires:
   A) Hidden evaluation
   B) Open procedures
   C) Negotiation
   D) Preference
   Answer: B
5. Procurement notices should be:
   A) Confidential
   B) Publicly available
   C) Selective
   D) Verbal
   Answer: B
6. Bid opening should be:
   A) Secret
   B) Transparent
   C) Delayed
   D) Negotiated
   Answer: B
7. Transparency includes:
   A) Non-disclosure
   B) Equal information to bidders
   C) Supplier preference
   D) Negotiation
   Answer: B
8. Transparency promotes:
   A) Monopoly
   B) Accountability
   C) Secrecy
   D) Delay
   Answer: B
9. Publication of tender results ensures:
   A) Bias
   B) Fairness
   C) Monopoly
   D) Delay
   Answer: B
10. Transparency is ensured through:
    A) Documentation
    B) Secrecy
    C) Negotiation
    D) Preference
    Answer: A
11. Transparency avoids:
    A) Fair competition
    B) Favoritism
    C) Accountability
    D) Efficiency
    Answer: B
12. Clear tender documents help in:
    A) Confusion
    B) Fair participation
    C) Delay
    D) Monopoly
    Answer: B
13. Transparency requires timely:
    A) Payments
    B) Information sharing
    C) Delivery
    D) Inspection
    Answer: B
14. Transparency enhances:
    A) Corruption
    B) Public confidence
    C) Delay
    D) Cost
    Answer: B
15. Non-transparent procurement leads to:
    A) Efficiency
    B) Corruption
    C) Competition
    D) Fairness
    Answer: B
16. Transparency in evaluation requires:
    A) Hidden criteria
    B) Pre-defined criteria
    C) Negotiation
    D) Delay
    Answer: B
17. Open tendering is most:
    A) Secretive
    B) Transparent
    C) Biased
    D) Complex
    Answer: B
18. Record keeping supports:
    A) Secrecy
    B) Transparency
    C) Delay
    D) Monopoly
    Answer: B
19. Transparency requires audit trail for:
    A) Payments
    B) Decisions
    C) Suppliers
    D) Delivery
    Answer: B
20. E-procurement enhances:
    A) Secrecy
    B) Transparency
    C) Bias
    D) Delay
    Answer: B

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21. Professionalism implies:
    A) Informality
    B) Competence and ethics
    C) Secrecy
    D) Delay
    Answer: B
22. Procurement officials must be:
    A) Biased
    B) Skilled
    C) Untrained
    D) Political
    Answer: B
23. Code of conduct ensures:
    A) Bias
    B) Ethical behavior
    C) Delay
    D) Secrecy
    Answer: B
24. Professionalism requires:
    A) Personal interest
    B) Objectivity
    C) Favoritism
    D) Negotiation
    Answer: B
25. Competency includes:
    A) Knowledge and skills
    B) Power
    C) Authority
    D) Preference
    Answer: A
26. Professional procurement avoids:
    A) Fairness
    B) Conflict of interest
    C) Competition
    D) Transparency
    Answer: B
27. Ethical procurement involves:
    A) Bribery
    B) Integrity
    C) Bias
    D) Secrecy
    Answer: B
28. Continuous training improves:
    A) Delay
    B) Competence
    C) Cost
    D) Bias
    Answer: B
29. Professional judgment must be:
    A) Arbitrary
    B) Reasoned
    C) Biased
    D) Delayed
    Answer: B
30. Accountability in professionalism means:
    A) No responsibility
    B) Answerability
    C) Secrecy
    D) Delay
    Answer: B
31. Procurement officials should avoid:
    A) Documentation
    B) Gifts from suppliers
    C) Transparency
    D) Audit
    Answer: B
32. Professional integrity means:
    A) Bias
    B) Honesty
    C) Secrecy
    D) Delay
    Answer: B
33. Ethical standards include:
    A) Favoritism
    B) Impartiality
    C) Secrecy
    D) Delay
    Answer: B
34. Professionalism promotes:
    A) Corruption
    B) Efficiency
    C) Bias
    D) Delay
    Answer: B
35. Decision-making must be:
    A) Arbitrary
    B) Evidence-based
    C) Biased
    D) Delayed
    Answer: B
36. Confidentiality is required for:
    A) Public data
    B) Sensitive information
    C) All documents
    D) Payment
    Answer: B
37. Professional conduct includes:
    A) Bias
    B) Fairness
    C) Secrecy
    D) Delay
    Answer: B
38. Procurement staff must declare:
    A) Profit
    B) Conflict of interest
    C) Delay
    D) Payment
    Answer: B
39. Professional procurement avoids:
    A) Competition
    B) Collusion
    C) Transparency
    D) Audit
    Answer: B
40. Ethical leadership promotes:
    A) Corruption
    B) Integrity
    C) Delay
    D) Bias
    Answer: B

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41. Governance in procurement ensures:
    A) Bias
    B) Control and accountability
    C) Delay
    D) Secrecy
    Answer: B
42. Internal control reduces:
    A) Efficiency
    B) Fraud
    C) Transparency
    D) Competition
    Answer: B
43. Audit ensures:
    A) Delay
    B) Compliance
    C) Bias
    D) Secrecy
    Answer: B
44. Vigilance mechanism prevents:
    A) Efficiency
    B) Corruption
    C) Transparency
    D) Competition
    Answer: B
45. Ethics in procurement promotes:
    A) Bias
    B) Fairness
    C) Delay
    D) Secrecy
    Answer: B
46. Procurement fraud includes:
    A) Transparency
    B) Bribery
    C) Audit
    D) Compliance
    Answer: B
47. Bid rigging is:
    A) Competition
    B) Collusion
    C) Transparency
    D) Audit
    Answer: B
48. Conflict of interest affects:
    A) Fairness
    B) Bias
    C) Delay
    D) Audit
    Answer: A
49. Whistleblower protection ensures:
    A) Silence
    B) Reporting misconduct
    C) Delay
    D) Bias
    Answer: B
50. Integrity pact promotes:
    A) Corruption
    B) Transparency
    C) Delay
    D) Bias
    Answer: B
51. Ethical procurement avoids:
    A) Competition
    B) Kickbacks
    C) Transparency
    D) Audit
    Answer: B
52. Compliance ensures:
    A) Rule adherence
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
53. Governance framework includes:
    A) Rules and procedures
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
54. Professional misconduct leads to:
    A) Reward
    B) Penalty
    C) Promotion
    D) Audit
    Answer: B
55. Transparency improves:
    A) Trust
    B) Bias
    C) Delay
    D) Monopoly
    Answer: A
56. Ethical culture reduces:
    A) Corruption
    B) Transparency
    C) Competition
    D) Audit
    Answer: A
57. Monitoring ensures:
    A) Delay
    B) Performance tracking
    C) Bias
    D) Secrecy
    Answer: B
58. Procurement decisions must be:
    A) Arbitrary
    B) Justified
    C) Biased
    D) Delayed
    Answer: B
59. Documentation supports:
    A) Transparency
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
60. Accountability requires:
    A) Secrecy
    B) Responsibility
    C) Delay
    D) Bias
    Answer: B
61. Ethical procurement enhances:
    A) Reputation
    B) Bias
    C) Delay
    D) Secrecy
    Answer: A
62. Professional training ensures:
    A) Delay
    B) Skill development
    C) Bias
    D) Secrecy
    Answer: B
63. Procurement governance reduces:
    A) Efficiency
    B) Risk
    C) Transparency
    D) Competition
    Answer: B
64. Code of ethics guides:
    A) Behavior
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
65. Transparency ensures:
    A) Bias
    B) Equal opportunity
    C) Delay
    D) Monopoly
    Answer: B
66. Professional procurement requires:
    A) Bias
    B) Objectivity
    C) Delay
    D) Secrecy
    Answer: B
67. Ethical violations result in:
    A) Reward
    B) Sanctions
    C) Promotion
    D) Audit
    Answer: B
68. Procurement integrity avoids:
    A) Transparency
    B) Corruption
    C) Audit
    D) Compliance
    Answer: B
69. Governance ensures:
    A) Random decisions
    B) Structured process
    C) Delay
    D) Bias
    Answer: B
70. Ethical procurement builds:
    A) Distrust
    B) Confidence
    C) Delay
    D) Bias
    Answer: B

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71. Transparency in contracts requires:
    A) Secrecy
    B) Clear terms
    C) Delay
    D) Bias
    Answer: B
72. Professional procurement ensures:
    A) Efficiency
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
73. Fair competition avoids:
    A) Monopoly
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
74. Procurement ethics include:
    A) Favoritism
    B) Integrity
    C) Delay
    D) Secrecy
    Answer: B
75. Transparency requires:
    A) Hidden process
    B) Open process
    C) Delay
    D) Bias
    Answer: B
76. Professionalism reduces:
    A) Efficiency
    B) Errors
    C) Transparency
    D) Competition
    Answer: B
77. Ethical procurement avoids:
    A) Fraud
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
78. Governance ensures:
    A) Control
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
79. Transparency improves:
    A) Trust
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
80. Professional procurement requires:
    A) Competence
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
81. Ethics in procurement avoids:
    A) Transparency
    B) Corruption
    C) Audit
    D) Compliance
    Answer: B
82. Accountability ensures:
    A) Responsibility
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
83. Transparency includes:
    A) Documentation
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
84. Professional conduct requires:
    A) Fairness
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
85. Ethical procurement promotes:
    A) Trust
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
86. Governance reduces:
    A) Risk
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
87. Transparency ensures:
    A) Fairness
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
88. Professionalism improves:
    A) Efficiency
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
89. Ethical behavior avoids:
    A) Fraud
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
90. Procurement integrity ensures:
    A) Fairness
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
91. Transparency builds:
    A) Trust
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
92. Professional procurement requires:
    A) Skill
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
93. Ethical procurement avoids:
    A) Corruption
    B) Transparency
    C) Audit
    D) Compliance
    Answer: A
94. Governance ensures:
    A) Accountability
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
95. Transparency improves:
    A) Credibility
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
96. Professionalism enhances:
    A) Quality
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
97. Ethical procurement builds:
    A) Reputation
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
98. Governance reduces:
    A) Corruption
    B) Delay
    C) Bias
    D) Secrecy
    Answer: A
99. Transparency ensures:
    A) Accountability
    B) Delay
    C) Bias
    D) Monopoly
    Answer: A
100. Professional procurement ultimately ensures:
     A) Public trust
     B) Delay
     C) Bias
     D) Monopoly
     Answer: A

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April 09, 2026

CPD, CPD-1 (Paper-1), Public Procurement

 

✅Principles and Methods of Public Procurement (100 MCQs)

1. The primary objective of public procurement is:
   A) Profit maximization
   B) Value for money
   C) Speed of purchase
   D) Vendor satisfaction
   Answer: B
2. “Value for money” includes:
   A) Lowest price only
   B) Quality only
   C) Optimal balance of cost, quality, and sustainability
   D) Supplier preference
   Answer: C
3. Which principle ensures fair competition?
   A) Confidentiality
   B) Transparency
   C) Economy
   D) Efficiency
   Answer: B
4. Economy in procurement means:
   A) Minimum cost regardless of quality
   B) Avoiding wasteful expenditure
   C) Maximum procurement
   D) Delayed procurement
   Answer: B
5. Efficiency refers to:
   A) Minimizing paperwork
   B) Timely procurement with optimal use of resources
   C) Lowest bidder selection
   D) High-value contracts
   Answer: B
6. Accountability in procurement implies:
   A) Delegation without control
   B) Clear responsibility for decisions
   C) No documentation
   D) Supplier control
   Answer: B
7. Transparency reduces:
   A) Costs
   B) Corruption
   C) Competition
   D) Delays
   Answer: B
8. Competition in procurement leads to:
   A) Monopoly
   B) Higher prices
   C) Better value outcomes
   D) Fewer bidders
   Answer: C
9. Fairness means:
   A) Equal opportunity to all bidders
   B) Preference to local suppliers
   C) Lowest price selection
   D) Negotiated contracts
   Answer: A
10. Integrity in procurement refers to:
    A) Strict deadlines
    B) Ethical conduct
    C) Documentation
    D) Budgeting
    Answer: B

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11. Procurement planning helps in:
    A) Avoiding approvals
    B) Timely acquisition
    C) Increasing cost
    D) Vendor monopoly
    Answer: B
12. Demand aggregation leads to:
    A) Higher costs
    B) Economies of scale
    C) Delays
    D) Reduced competition
    Answer: B
13. Specifications should be:
    A) Brand-specific
    B) Generic and functional
    C) Vendor-biased
    D) Confidential
    Answer: B
14. Over-specification results in:
    A) More competition
    B) Reduced competition
    C) Lower cost
    D) Better quality
    Answer: B
15. Under-specification leads to:
    A) Ambiguity
    B) Precision
    C) Better bids
    D) Lower cost
    Answer: A
16. Life-cycle costing includes:
    A) Purchase cost only
    B) Cost over entire life of asset
    C) Maintenance only
    D) Disposal only
    Answer: B
17. Procurement planning is done at:
    A) End stage
    B) Beginning stage
    C) Post-contract
    D) Payment stage
    Answer: B
18. Risk assessment in procurement includes:
    A) Ignoring suppliers
    B) Identifying uncertainties
    C) Increasing cost
    D) Avoiding planning
    Answer: B
19. Budget approval is part of:
    A) Contract execution
    B) Procurement planning
    C) Vendor selection
    D) Payment
    Answer: B
20. Market analysis helps in:
    A) Avoiding competition
    B) Understanding supplier base
    C) Fixing price
    D) Reducing quality
    Answer: B
21. Technical specifications must be:
    A) Vague
    B) Clear and measurable
    C) Confidential
    D) Negotiable
    Answer: B
22. Procurement plan should include:
    A) Personal preferences
    B) Timeline and budget
    C) Supplier names
    D) Negotiated price
    Answer: B
23. Indenting department is responsible for:
    A) Payment
    B) Requirement identification
    C) Audit
    D) Inspection
    Answer: B
24. Standardization leads to:
    A) Complexity
    B) Cost reduction
    C) Delays
    D) Monopoly
    Answer: B
25. Procurement strategy depends on:
    A) Political factors only
    B) Nature of goods/services
    C) Personal decision
    D) Random choice
    Answer: B

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26. Open tendering ensures:
    A) Limited competition
    B) Maximum competition
    C) No competition
    D) Single vendor
    Answer: B
27. Limited tendering is used when:
    A) High urgency
    B) Wide competition required
    C) No budget
    D) No specification
    Answer: A
28. Single tender is justified when:
    A) Many suppliers available
    B) Proprietary item
    C) Open market exists
    D) Low cost
    Answer: B
29. Two-stage bidding is used for:
    A) Simple goods
    B) Complex procurements
    C) Small purchases
    D) Urgent cases
    Answer: B
30. E-procurement improves:
    A) Paperwork
    B) Transparency and efficiency
    C) Cost increase
    D) Delay
    Answer: B
31. Reverse auction leads to:
    A) Price increase
    B) Price discovery
    C) Supplier monopoly
    D) No bidding
    Answer: B
32. Framework agreement is:
    A) One-time contract
    B) Long-term arrangement
    C) Informal deal
    D) Verbal agreement
    Answer: B
33. Request for Proposal (RFP) is used for:
    A) Goods
    B) Complex services
    C) Small items
    D) Emergency purchase
    Answer: B
34. Request for Quotation (RFQ) is used for:
    A) High-value works
    B) Low-value goods
    C) Consultancy
    D) Arbitration
    Answer: B
35. Expression of Interest (EOI) is for:
    A) Final selection
    B) Shortlisting vendors
    C) Payment
    D) Inspection
    Answer: B
36. Negotiation is generally:
    A) Encouraged
    B) Avoided in open tender
    C) Mandatory
    D) Illegal
    Answer: B
37. Spot purchase is:
    A) Planned
    B) Immediate procurement
    C) Contract-based
    D) Long-term
    Answer: B
38. Rate contract is:
    A) Fixed quantity
    B) Fixed rate
    C) Fixed supplier
    D) Fixed time
    Answer: B
39. Global tendering is used when:
    A) Local suppliers available
    B) International competition needed
    C) Small purchase
    D) Emergency
    Answer: B
40. Turnkey contracts involve:
    A) Partial delivery
    B) Complete project delivery
    C) Supply only
    D) Service only
    Answer: B
41. Consortium bidding is when:
    A) One supplier bids
    B) Multiple firms jointly bid
    C) No bidding
    D) Government bids
    Answer: B
42. Competitive dialogue is used for:
    A) Simple procurement
    B) Complex projects
    C) Low-value goods
    D) Routine items
    Answer: B
43. Direct procurement bypasses:
    A) Payment
    B) Competition
    C) Inspection
    D) Audit
    Answer: B
44. Quality-cum-Cost Based Selection (QCBS) applies to:
    A) Goods
    B) Consultancy services
    C) Small purchases
    D) Emergency procurement
    Answer: B
45. Lump-sum contract means:
    A) Variable payment
    B) Fixed total payment
    C) Daily payment
    D) Unit rate
    Answer: B
46. Unit rate contract depends on:
    A) Quantity variation
    B) Fixed cost
    C) No measurement
    D) Lump sum
    Answer: A
47. E-reverse auction benefits:
    A) Buyer
    B) Supplier
    C) Both
    D) None
    Answer: A
48. Competitive bidding ensures:
    A) Fair pricing
    B) Monopoly
    C) Secrecy
    D) Bias
    Answer: A
49. Bid validity period ensures:
    A) Payment
    B) Price stability
    C) Delivery
    D) Inspection
    Answer: B
50. Pre-bid meeting is conducted to:
    A) Reject bidders
    B) Clarify doubts
    C) Finalize contract
    D) Fix price
    Answer: B

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51. Lowest evaluated bidder is called:
    A) L2
    B) L1
    C) H1
    D) M1
    Answer: B
52. Technical evaluation precedes:
    A) Payment
    B) Financial evaluation
    C) Delivery
    D) Inspection
    Answer: B
53. Bid responsiveness means:
    A) Lowest cost
    B) Meeting all requirements
    C) Fast delivery
    D) High quality
    Answer: B
54. Non-responsive bids are:
    A) Accepted
    B) Rejected
    C) Negotiated
    D) Modified
    Answer: B
55. Post-qualification verifies:
    A) Price
    B) Supplier capability
    C) Delivery
    D) Payment
    Answer: B
56. Bid security ensures:
    A) Payment
    B) Serious participation
    C) Delivery
    D) Inspection
    Answer: B
57. Performance security ensures:
    A) Bidding
    B) Contract performance
    C) Payment
    D) Audit
    Answer: B
58. Evaluation criteria must be:
    A) Hidden
    B) Pre-disclosed
    C) Flexible
    D) Negotiable
    Answer: B
59. Weighted scoring is used in:
    A) Goods
    B) Consultancy
    C) Small purchases
    D) Emergency
    Answer: B
60. Abnormally low bids indicate:
    A) Efficiency
    B) Risk
    C) High quality
    D) Fairness
    Answer: B
61. Bid opening should be:
    A) Confidential
    B) Public
    C) Secret
    D) Delayed
    Answer: B
62. Two-envelope system separates:
    A) Price & delivery
    B) Technical & financial bids
    C) Supplier & buyer
    D) Payment & inspection
    Answer: B
63. Bid comparison requires:
    A) Uniform criteria
    B) Random selection
    C) Negotiation
    D) Preference
    Answer: A
64. Conditional bids are:
    A) Accepted
    B) Rejected
    C) Negotiated
    D) Approved
    Answer: B
65. Evaluation committee must be:
    A) Biased
    B) Competent
    C) Single person
    D) External only
    Answer: B
66. Clarifications during evaluation should:
    A) Change bid
    B) Not alter substance
    C) Increase price
    D) Delay process
    Answer: B
67. Financial bid is opened for:
    A) All bidders
    B) Qualified bidders
    C) Rejected bidders
    D) Negotiated bidders
    Answer: B
68. Ranking of bidders is based on:
    A) Technical score
    B) Price
    C) Combined criteria
    D) Random
    Answer: C
69. Tie bids are resolved by:
    A) Lottery
    B) Predefined rules
    C) Negotiation
    D) Delay
    Answer: B
70. Bid withdrawal leads to:
    A) Reward
    B) Penalty
    C) Promotion
    D) Approval
    Answer: B
71. Comparative statement is used for:
    A) Payment
    B) Bid analysis
    C) Inspection
    D) Delivery
    Answer: B
72. Price reasonableness is checked by:
    A) Guess
    B) Market comparison
    C) Negotiation
    D) Delay
    Answer: B
73. Award decision is based on:
    A) Personal choice
    B) Evaluation result
    C) Negotiation
    D) Delay
    Answer: B
74. Letter of Acceptance signifies:
    A) Bid rejection
    B) Contract award
    C) Payment
    D) Inspection
    Answer: B
75. Contract is concluded when:
    A) Bid submitted
    B) LOA issued
    C) Payment made
    D) Delivery done
    Answer: B

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76. Procurement audit ensures:
    A) Delay
    B) Compliance
    C) Cost increase
    D) Supplier control
    Answer: B
77. Ethical procurement avoids:
    A) Transparency
    B) Conflict of interest
    C) Competition
    D) Documentation
    Answer: B
78. Conflict of interest arises when:
    A) Fair competition
    B) Personal interest affects decision
    C) Transparency
    D) Audit
    Answer: B
79. Sustainable procurement considers:
    A) Cost only
    B) Environmental impact
    C) Speed
    D) Supplier
    Answer: B
80. Green procurement promotes:
    A) Pollution
    B) Eco-friendly goods
    C) Cost increase
    D) Delay
    Answer: B
81. Vendor rating helps in:
    A) Ignoring suppliers
    B) Performance tracking
    C) Payment delay
    D) Audit
    Answer: B
82. Contract management ensures:
    A) Delay
    B) Compliance with terms
    C) Cost increase
    D) Supplier control
    Answer: B
83. Variation order is used when:
    A) No change
    B) Scope change
    C) Payment
    D) Inspection
    Answer: B
84. Force majeure refers to:
    A) Supplier fault
    B) Unforeseen events
    C) Payment delay
    D) Inspection
    Answer: B
85. Liquidated damages are:
    A) Reward
    B) Penalty for delay
    C) Bonus
    D) Payment
    Answer: B
86. Procurement cycle ends with:
    A) Tender
    B) Payment & closure
    C) Delivery
    D) Inspection
    Answer: B
87. Inspection ensures:
    A) Payment
    B) Quality compliance
    C) Delivery
    D) Audit
    Answer: B
88. Acceptance test verifies:
    A) Price
    B) Performance
    C) Supplier
    D) Audit
    Answer: B
89. Inventory control helps in:
    A) Overstocking
    B) Optimal stock
    C) Delay
    D) Waste
    Answer: B
90. Just-in-time reduces:
    A) Cost
    B) Inventory
    C) Quality
    D) Supplier
    Answer: B
91. Procurement fraud includes:
    A) Transparency
    B) Collusion
    C) Competition
    D) Audit
    Answer: B
92. Collusion means:
    A) Competition
    B) Secret agreement among bidders
    C) Transparency
    D) Audit
    Answer: B
93. Kickbacks are:
    A) Legal payments
    B) Illegal benefits
    C) Audit
    D) Tax
    Answer: B
94. Whistleblowing promotes:
    A) Corruption
    B) Transparency
    C) Delay
    D) Cost
    Answer: B
95. E-tendering improves:
    A) Delay
    B) Efficiency
    C) Cost
    D) Monopoly
    Answer: B
96. Procurement policy ensures:
    A) Random decisions
    B) Standardization
    C) Delay
    D) Bias
    Answer: B
97. Benchmarking compares:
    A) Suppliers
    B) Performance standards
    C) Price only
    D) Audit
    Answer: B
98. Procurement KPI measures:
    A) Delay
    B) Performance
    C) Cost
    D) Supplier
    Answer: B
99. Strategic sourcing focuses on:
    A) Short-term purchase
    B) Long-term value
    C) Cost only
    D) Speed
    Answer: B
100. Public procurement ultimately aims at:
     A) Profit
     B) Public welfare
     C) Supplier benefit
     D) Delay
     Answer: B

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April 08, 2026

CPD, CPD-1 (Paper-1), Public Procurement, Stores