her waist. She jolts back to reality and insists on meeting Mrs. Primrose. Owen and Oliver escort Lily to Drawing Room "A", where they, Mrs. Primrose, and Oscar all attempt to persuade Lily to sign the contract. Bruce enters and tries to convince her not to sign it ("Sextet"). Lily resolves not to live in the past and refuses to sign, deciding to continue in movies with Bruce. Oscar suggests a compromise; if Lily does the play, Mrs. Primrose can pay for the movie too. Lily finds this very exciting and informally agrees. She insists on a few minutes alone before signing the contract. In Cleveland, Ohio, some officers have boarded the train. They are looking for Mrs. Primrose, who escaped from the Benzinger Clinic mental institution that morning, and they have come to take her back. The news soon spreads throughout the train: "She's a Nut!" Oscar suddenly has no money again, and Lily, who has not yet signed the contract, angrily confronts him. Max Jacobs arrives with a new play, and Lily joyously greets him. She reads over the play, trying to envision herself as the decadent, glamorous title character, "Babette", but her thoughts keep straying to Mary Magdalene. Nevertheless, she finally decides that she will do Max's play. Oscar meets Oliver and Owen in the observation car. He is carrying a gun and insists that he is going to end it all. He details "The Legacy" he is leaving them and returns to Drawing Room "A". Oliver and Owen are convinced he's just being dramatic, but then they hear gunshots. They find Mrs. Primrose holding the gun and Oscar mournfully staggering. She tried to take the gun away from him and it went off. Dr. Johnson examines Oscar and finds nothing wrong with him. Oscar says he will read Dr. Johnson's play if she pretends he really is wounded. Dr. Johnson agrees, and Owen tells Lily that Oscar is dying. Oscar begs her to sign the contract before he dies. She signs it, and they passionately sing to each other ("Lily, Oscar"). Max Jacobs rushes in, and Oscar, very much alive, gleefully shows him the contract. Lily tells him to check the signature. She has signed "Peter Rabbit"! She and Oscar scream ridiculous insults at each other until they start laughing and fall into each other's arms. They reconcile, kissing passionately, resulting in an outraged Max leaving