Mrs. Jennings has found out about the engagement of Lucy and Edward. She is shocked by the news and tells Elinor, Fanny Dashwood is distraught by the news of her brother's secret engagement. Ann Steele, called Nancy by Mrs. Jennings, told the secret to Fanny. She thought Fanny would not mind, because she seemed so friendly toward the Steele sisters. She misread the situation and instead of being happy, the news threw Fanny into hysterics causing her to demand the sisters leave at once.

Mrs. Ferrars took the news no better than her daughter did, because the two of them were planning an engagement between Edward and Miss Morton. They send for Edward to confront him with this news and to make him end the engagement. Edward refuses to end the engagement, even after his mother told him he would be cut off from her financially and personally. He leaves his mother, determined to marry Lucy.

Elinor did confess to Marianne that she has known about the engagement for four months. This news made Marianne reconsider how she treated her sister during her grief over her broken relationship with Willoughby.

Three days after finding out about the engagement, Elinor is in Kensington Gardens walking with Mrs. Jennings and her friend, when Anne Steele approaches her and lets her know she wishes to have a word with her. Anne tells Elinor, that morning Edward came by their home to see Lucy and gave her the option of breaking off the engagement, because he no longer has an income. Lucy would not break the engagement, so the two of them began to plan their future. Edward has decided to be ordained and gain employment as a curate, after which he and Lucy will marry.

Lucy, the next morning, has a letter delivered to Elinor telling her how much her friendship means to her and asking if any one she knows can help Edward find a job. She talks about how much she respects Mrs. Jennings, because she knows Elinor will show the letter to her. Lucy hopes Mrs. Jennings will help her and Edward in any way she can.

The Dashwood sisters have been living with Mrs. Jennings for two months and Marianne is anxious to go home. A plan is set for the sisters to accompany Charlotte Palmer and her husband to their home, Cleveland, for Easter and then they will travel home from there. Marianne is not happy with the delay in their travel plans, but she is persuaded to accept it.

Meanwhile, Colonel Brandon has come to visit at Mrs. Jennings's home. He tells Elinor about his plan of giving the living of Delaford, a rectory, to Edward Ferrars. Colonel Brandon tells her the house is small and so is the amount Edward would receive, in fact it is so small that he and Lucy would not be able to marry until he finds a position which pays more. Elinor is thrilled to tell Edward of the offer, which is what Colonel Brandon wishes her to do. Mrs. Jennings, who has been watching the two talk and hearing only bits and pieces of the conversation, thinks Colonel Brandon is proposing to Elinor.

Mrs. Jennings has told Elinor she has heard enough of her conversation with Colonel Brandon, to know what they were talking about. She tells her she is happy for her, while Elinor, thinking she knows of the offer the colonel was making to Edward, thanks her for her good wishes. She tells her she is happy about the colonel and his offer. The two women go on having a conversation which is at cross purposes, each thinking the other understands what they are talking about.

Edward shows up at Mrs. Jennings's door as she is leaving and she sends him up to speak with Elinor. Mrs. Jennings thinks he is going to preform the wedding for Colonel Brandon and Elinor. After telling Edward of the offer, he is stunned and happy, he quickly accepts the colonel's offer.

After Edward has left to go and thank Colonel Brandon, Mrs. Jennings returns to talk to Elinor about her wedding. It all comes out that the two women misunderstood each other and Mrs. Jennings is happy for Edward. She tells Elinor she thinks before Michaelmas Lucy and Edward will be married.

Elinor decides she must visit Fanny, because it has been over a week since she found out about her brother's engagement. She goes alone to the house, since Marianne and Mrs. Jennings cannot bring themselves to visit her, after the way she and her mother treated Edward and Lucy. She meets John on the steps of his home and he brings her into the house.

He has heard of Colonel Brandon giving the living of Delaford to Edward. He is stunned by the news and cannot understand the colonel's motives for giving it to Edward. Elinor tells him the reason is because he wants to help Edward during his time of need. John is surprised by this and tells Elinor that Edward is a lucky man to have this given to him.

Later Elinor sees Robert Ferrars at John's home and he too has heard about Edward's news. He takes the stand that Edward has ruined his life by marrying Lucy and forfeiting the money and social standing offered by his mother. Elinor keeps her opinions to herself on the matter and awaits to see her sister-in-law. Fanny does not look well, but she tells Elinor she is sad to see her and Marianne leave London, because she wishes to visit with them more.

Fanny Dashwood and her mother are stunned by the news of Edward's engagement to Lucy. Mrs. Ferrars cuts Edward off from her socially and financially, because he refuses to end the engagement. Colonel Brandon, however, offers Edward a living at Delaford, giving him and Lucy hope that they may marry soon.