Daniel tells Elizabeth that Sir Joshua Thackery has died meaning there will be a bye election for the Manchester ward which he should win. To please Elizabeth he shows her his letter of resignation from the ship canal project to which Elizabeth replies 'I do love you'. They go to see William when Beaumont is there and tell William what is going on. Elizabeth tells William that the amount offered by Beaumont, £300,000, for the yard is nowhere near enough and that she and Daniel will match the offer. William decides not to sell the yard to either of them. Beaumont leaves swearing that 'for as long as he lives he will make it his business to ruin Daniel'.