At Dick Swiveller’s apartments on Drury Lane, Dick and Frederick discuss the grandfather’s health and the inheritance he will leave behind. Originally, the money was to be split between Frederick and Nell, but now Frederick assumes the total sum will go to Nell alone. Frederick explains that because of how the grandfather raised Nell, she will be quite easy to manipulate into marrying Dick. Frederick proposes his plan to Dick, who seems taken aback since Nell is only 13. The two discuss Nell’s eligibility for marriage in three to four years. A letter arrives for Dick, reminding him of a party that evening. Dick says he will attend, if only to initiate a breakup with his current romantic interest, Sophia Wackles.

Dick orders food brought in for himself and Frederick. A nearby eatery denies his order, as he has a substantial unsettled account with them; Dick sends a messenger to a more distant establishment, which does send a hearty meal. Frederick chides Dick for his many debts to local shops and restaurants because Dick now has to keep track of where he travels, lest a proprietor stop him and demand payment. As Dick prepares for the party that evening, he devises a plan for how to break up with Sophia: He intends to feign jealousy so that he can start a fight and then use that argument as a reason to leave her.