How do you handle people who think they know it all? That they always do the right thing and all the others the wrong one?

Of course it might have a lot to do with their qualifications, education, experience etc etc. But it doesn't mean we are any less smart than them. Everyone has their own views and it is possible that the least educated ones know a lot too.

And yes, how to deal with them would be: Let them think what they want about themselves (we can't stop that) but as long as we are doing the right thing, it doesn't matter if they think we are wrong or we lack knowledge about it than them. It's just one opinion in a million. We don't need to worry about their views on how right we are. It will definitely be a difficult situation to be in, but there is nothing to be stressed about.

i ask lot of questions and contradict them 

although i feel it is a quistion born from anger and stress, but my advice to deal with such people is to not give them openions but give them choices and they are free to chose.

with this type of mentality you have to (stick to the rules, keep records of their orders and actions, stay formal, never go in personal sides, and offcourse NEVER DO MISTAKES).

Good luck my friend :)

First observe that person and be patient. If the person is really highly educated and has knowledge in lots of different fields ,learn from her/him. If that person isn't that smart as she/he thinks  indirectly show off their mistakes and they will eventually figure it out and be open to new ideas .