Rumors abound that Irene Forsyte and Philip Bosinney are having an affair.Young Jolyon and Helene see Philip Bosinney and a beautiful woman meeting secretly. Young Jolyon had met Philip at his Aunt Anne's funeral but has no idea who the woman is. When they learn that it is Soames' wife Irene, Old Jolyon suggests that Young Jolyon should speak to Bosinney and as June's father, he feels obliged to do so. It's clear to him that Bosinney will continue his affair regardless of the impact on June. Soames meanwhile is upset at the ever increasing cost of finishing his house and tells Old Jolyon and June that he may have to seek a remedy through the courts. Old Jolyon and Soames' father James have a falling out over the issue. Irene thinks Soames is despicable and asks that she be released from her obligations to him, a condition she had imposed on him when he proposed to her.