Shylock realizes that he has been foiled. Thus he says that he is now willing to take Bassanio's offer of three times the amount of the bond. Portia decides otherwise. Shylock shall have "nothing but the penalty" — "just a pound of flesh" — no more, no less. And if he takes even "in the estimation of a hair" more than a pound of flesh, he will die and all his goods will be confiscated. Gratiano jeers at the moneylender; now the tables are turned. Realizing that he is beaten at his own game, Shylock asks for only the amount of the bond — and Bassanio offers it — but Portia points out that all the court was witness to Shylock's refusing the money. Therefore, he can have "nothing but the forfeiture," which he can still take, but at his own peril. In addition, Portia reminds Shylock that one of the laws of Venice forbids an alien from directly or indirectly attempting "to seek the life of any citizen" of Venice. She tells Shylock that she has seen sufficient proof that Shylock seeks Antonio's life both directly and indirectly. Thus, she commands him to "beg mercy of the Duke." At this point, the duke speaks and pardons Shylock, sparing his life and adding that the penalty of the state's taking half of Shylock's goods will be reduced if Shylock evidences some "humbleness." Shylock is adamant at such a proposal: "Nay, take my life and all," he declares.
Following the duke's merciful example, Antonio says that he will take only half of Shylock's goods which are due to him (Shylock can have the other half) in trust in order to give them to Lorenzo (Shylock's son-in-law) upon Shylock's death, on two conditions: first, Shylock must become a Christian, and second, he must deed everything to Jessica and Lorenzo. Quietly, Shylock agrees to the settlement: "I am content," he says, and asks permission to leave the court.
