Gail is rather takenaback (to say the least) at Paul's "proposal". But Paul says he and Gail are similar in a lot of ways - they both want to make something of their lives. He thinks by getting married they'll be able to help each other - as friends. It would work out to their mutual advantage. Gail allows that a lot of marriages have been based on convenience. Paul says by not getting caught up in emotion, their marriage will last - they've both been burned by love already. They'd just be two intelligent people making the wisest possible move to secure both their futures. Gail goes to make herself a strong coffee.
Scott is having a midnight feast when Mike knocks on the back door. He asks Scott if he thinks Mike has been acting weirdly recently. Scott says that he's been trying to act cool since he met his friends at Uni. Mike thanks him for being truthful and apologises. He says he's let everyone down.
Paul is telling Gail that at least she wouldn't have to worry about creeps sniffing around her(!) Gail makes sarcastic remarks about a business contract instead of vows. Paul says they could just divorce if things didn't work out in business(!) Gail says he's such an old romantic(!) She tells Paul that she wants to thin the idea through.
Mike is up talking to Bouncer(!) when Des comes out in his dressing-gown. Des tells Mike that he and Daphne love him heaps and it's not his fault that Daphne's ill. But Mike says it's his fault - he's been acting like a child. Mike suggests that he moves out, but Des says they're a family and they'll see it through together.
Gail's, the following morning
Rob tells Gail that he's going to the workshop to work at the car, much to her disgust. Rob says he heard voices last night and asks if Gail had visitors.
GAIL: Only one - Paul.
ROB: What did he want at that hour.
GAIL: Oh, nothing important. Just a couple of business problems, asked me to marry him, that sort of thing.
Rob gets very excited and says Paul is a great catch. But Gail backtracks and says she was only joking. Rob says she could do a lot worse than marry Paul - they're like peas in a pod.
Scott asks Helen for her advice - he wants to buy Charlene a present to show that he cares about her. Helen suggests a friendship ring, but Scott thinks that might be a bit corny.
In the background, Jim is shouting at Lucy on the phone and saying she's "Coming home, and that's final!"
Mike has made breakfast and says he's going to skip Uni to go and see Daphne. But Des won't hear of him missing Uni. Mike is also trying to work out on a piece of paper if he can afford to buy a cheap car. Des helps him by putting down his incomings against the cost of the car. It doesn't look good and Des explains how cars are a constant drain on your finance.
Jim tells Helen and Scott that Lucy wanted to stay in Europe for another four months to go to an exclusive college. He says he doesn't want to lose Lucy as well as Julie.
Mr Udigawa calls round with a bonsai tree for Helen to congratulate them on the engagement of Paul and Gail(!) The Robinsons are bemused and Mr Udigawa is embarrassed to hear that he has let the cat out of the bag.
Gail is sitting by the lake when Jeremy jogs up. She tells him to go away. She doesn't want him to drag Rob into working on the car. Jeremy invites Gail to have lunch with him - he'll stay away after that if she tells him to. Gail agrees to meet him at the hotel restaurant at 12pm.
Jim, Helen and Scott are very surprised to hear about the engagement between Paul and Gail. While they are taking, Paul comes in through the back door and they ask him if it's true. Paul apologises for Mr Udigawa beating him to the punch. He says he's realised what a wonderful woman Gail is and they all hug him.
Jeremy and Gail are having dinner and Gail orders the most expensive meal on the menu. Jeremy starts reminiscing about their marriage and suggests that they go to Luna Park after lunch. Gail says it's his money!
Outside the Coffee Shop
Mike is reading through the Small Ads and talking to Des. Mike says he's given up the idea of getting a car. He's going to get a bike instead!
Jim and Scott are looking at Jeremy's car. They tell Rob that Paul and Gail are engaged. Rob says Gail said it was a joke, but Jim says he got it straight from Paul. Rob suggests they have some of his strong apple cider to celebrate!
Helen is painting and chatting to Paul about his engagement. She asks Paul if Gail is completely over Jeremy. Paul says that she is.
Jeremy and Gail come in from Luna Park and she says she hasn't had so much fun in ages. Jeremy tells Gail he still loves her, and that he knows she still loves him. He forcibly kisses her and she resists at first but then starts kissing him back.