What happens
Tranio and Hortensio spy on Lucentio and Bianca's lesson, discovering their genuine affection. Both men renounce their suits, declaring they will abandon their pursuit of Bianca. Hortensio announces plans to marry a widow instead. Tranio then spots an old man and devises a scheme: he'll convince the stranger to impersonate Vincentio, Lucentio's father, so Tranio can secure Bianca's dowry and finalize the secret marriage.
Why it matters
This scene crystallizes the play's central theme of performance and deception. Hortensio and Tranio, who've been disguised as tutors to court Bianca, witness the genuine intimacy between Lucentio and her—not performed, not strategic, but real. Their swift about-face is telling: they abandon their suits not out of noble defeat but pragmatic recognition. Hortensio's retreat to marry a widow signals his acceptance that real love exists elsewhere. Tranio's response is characteristically shrewd: rather than accept loss, he pivots to a new deception. The pedant becomes a tool in Tranio's hands, proof that in this play's world, identity is infinitely malleable and can be rented like a costume.
The scene also exposes the fragility of the older men's courtship schemes. Gremio and Hortensio entered the play as confident suitors, armed with wealth and flattery. Yet they lose Bianca not to superior courtship but to genuine feeling—something their performance-based wooing could never access. Tranio, by contrast, has learned that performance must serve a real goal. His plan to fabricate Vincentio demonstrates how thoroughly he understands the mechanics of disguise in Padua: everyone assumes surfaces are real. A false father with false papers, dressed appropriately and speaking with authority, will be accepted as genuine. The scene's final revelation—that Tranio will help Lucentio marry Bianca in secret—shows how the play's deceptions have begun to consolidate around genuine love, even as they rely on ever-more-elaborate fraud.