Proposal is defined under

Option (1) is incorrect: Section 2(g) of the Indian Contract Act, 1872  defines, an agreement not enforceable by law is said to be void. Option (2) is correct: When the person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise defined under Section 2(b) of the Indian Contract Act, 1872. Option (3) is incorrect: Section 2(h) of the Indian Contract Act, 1872  defines, an agreement enforceable by law is a contract. Option (4) is incorrect: Section 2(i) of the Indian Contract Act, 1872 defines,  an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract.