Yes, there is such a thing as a bad present. Avoid:
Dumb Awards--Unless your father actually thinks he's the "Number One Dad," don't mock him by getting him one of these dinky things. The same goes with the matching "Number One Dad" T-shirt, "Number One Dad" coffee mug and "Number One Dad" paper shredder. These are only acceptable if you have a friend who is actually expecting his first child and you want to make a mushy, sentimental statement.
Clothes--Unless you've actually seen the recipient try on and then put back a specific item of clothing because she didn't have the money to splurge on it, don't buy clothes for anybody. Chances are, you'll get the wrong size, style and/or color, and the recipient will be forced to wear the thing once in front of you, then proceed to tuck it in the back of her closet and hope you forget about it soon. If you're set on clothes, you're much better off getting a gift certificate.
Offensive Presents--You might think you're doing good by giving your overweight coworker an ab-roller for Christmas, but you're not. Think about what your presents are saying before you hand them over.
Presents You Actually Want for Yourself--Just because you want a remote-controlled monster truck doesn't mean your mom will appreciate it, especially when you ask to borrow the truck right after she takes it out of the box.
Too-Generic Presents--Even though they are given often, mugs are never good presents, except for people you barely know. The same goes for $10 worth of lottery tickets. In other words, stay away from gifts that say nothing except "I have no clue... so here."
Pets--There might be a reason why the recipient doesn't already have a dog or cat. Pets are a big responsibility, and it's a bad idea to push the recipient into that position without warning. Stick to sea monkeys, or perhaps a fish (if you know that he is an animal person) if you insist on giving something live.