Shylock replies that he has sworn by the Jewish Sabbath to exact the penalty and that he prizes the pound of flesh more than three thousand ducats. Bassanio, who has arrived from Belmont, offers Shylock six thousand ducats, twice the original sum, but Shylock declares that he would not forfeit the pound of flesh for thirty-six thousand ducats. The Duke says that he has sent messages to the learned lawyer, Doctor Bellario, asking him to come here and decide the matter. A messenger has just arrived from Bellario. Nerissa enters, disguised as a lawyer's
clerk, and gives the Duke a letter from Bellario. The Duke reads the letter from Bellario aloud. It says that the Doctor is ill, but has sent in his place a learned young lawyer from Rome named Balthasar, who has been informed of all the details of the case and will pass judgment. The Duke tells the disguised Nerissa to admit Balthasar.
Balthasar enters; he is really the disguised Portia, of course. The Duke greets her and asks if she knows the case. She says she does, and asks Shylock and Antonio to stand. Portia asks about the money, and Bassanio cries that he is willing to pay it ten times over, and then he begs Portia to bend the law slightly so that Antonio may be saved. Portia replies that she cannot do this, and Shylock is joyful. She examines the bond, says that
Shylock is entitled to the pound of flesh, and tells Antonio to prepare his breast for the knife. Portia asks Shylock to bring a doctor to prevent Antonio from bleeding to death, but Shylock refuses to consider it, saying
that it is not in the bond. As the Jewish merchant prepares to take the flesh, Portia reminds him that the bond says nothing about spilling blood and for a Jew to shed a Christian's blood is against the laws of Venice. Therefore, he must take the flesh without spilling Antonio's blood. Shylock says that he will accept Bassanio's offered money, but Portia says no, he must have his bond or nothing. Not only that, but he is guilty of conspiring against the life of a Venetian citizen, so his own lands and life are forfeit.
The Duke declares that he will show mercy--he takes half of Shylock's money for the state and gives half to Antonio. Shylock protests that they may as well kill him as take all his money. Antonio offers to give his share of Shylock's estate back, on condition that he leaves all his goods to Jessica and Lorenzo. The Duke invites the young lawyer to dinner, but Portia declines, saying that she must leave immediately for Padua, the city where Bellario lives.