On the eve of his departure for India, Sir Oliver entrusts his nephews, Charles and Joseph Surface, to the care of his friend, Sir Peter Teazle. Twenty-five years later finds Charles a wild character and a thorn in Sir Peter's side. Joseph, a smug hypocrite, is a favorite with the elderly bachelor. Sir Peter is captivated by Ann, a country squire's daughter, whom he meets by accident. Although many years his junior, the girl becomes his wife. Shortly afterwards, Sir Peter becomes the guardian of Maria, with whom Charles is deeply in love. Sir Peter frowns upon the young man's suit. Learning that Maria is immensely wealthy, Joseph resolves to marry her. Lady Sneerwell, in love with Charles, successfully conspires with Joseph and her secretary, Snake, to separate the sweethearts. Meanwhile, Lady Teazle leads Sir Peter a merry life. Sir Benjamin Backbite, a notorious gossip, chances to visit the Teazles while Sir Peter is remonstrating with his wife because of her extravagance. After listening to the war of words, Sir Benjamin departs for Lady Sneerwell's home, where he finds the members of the School for Scandal engaged in tearing the reputations of their friends to tatters. The most harmless incidents are twisted and distorted. As told by Sir Benjamin, the quarrel between Sir Peter and Lady Teazle wound up in blows. Sir Oliver, returning from abroad, determines to study the characters of his nephews. He informs Sir Peter of his intention of meeting each under an assumed identity. To Charles, Sir Oliver appears as Premium, a money lender. The result of the interview between nephew and uncle finds the latter delighted with Charles. Despite Sir Peter's friendship for him, Joseph makes desperate love to Lady Teazle. Due to the efforts of Joseph, Snake and Lady Sneerwell, Sir Peter is led to believe that Charles and Lady Teazle love each other. Sir Oliver, visiting Joseph in the guise of a poor relation, finds the young man an ungrateful cur. In the meantime Lady Teazle is induced by Joseph to call upon him at his apartments. It happens that Sir Peter, having drawn up a will leaving all his property to Lady Teazle, calls upon Joseph to ask his advice. Unable to leave without detection, Lady Teazle hides behind a screen. She thus hears of what her husband has done to provide for her comfort after his death. Sir Peter's words touch Lady Teazle's heart, filling her with remorse. The husband discovers that someone is concealed behind the screen. He is about to investigate, when Joseph hurriedly declares that it is a French milliner. Charles is announced. Not wishing to meet him. Sir Peter hides in a closet. In the conversation which ensues between the brothers, Sir Peter discovers that his suspicions concerning Lady Teazle and Charles are unfounded. Lady Teazle, on the other hand, learns of Joseph's hypocrisy. Charles discovers Sir Peter in the closet just as Joseph learns that Lady Sneerwell is calling. While the hypocrite endeavors to warn her away, Charles and Sir Peter determine to have a look at the milliner. The resultant discovery astounds Sir Peter. Lady Teazle, thrusting aside Joseph's lying excuses with contempt, confesses the flirtation she has carried on with him. Lady Sneerwell gets an inkling of what has taken place. At once the wildest rumors are circulated by the members of the School for Scandal. These have it that both Sir Peter and Joseph had been shot, stabbed or horsewhipped. The gossip-mongers who hasten to Sir Peter's house to offer condolences, are astounded to find him alive and well. Joseph, arriving at Sir Peter's home in an effort to seek forgiveness, learns the real identity of the "poor relation" who had visited him. With the news that he has been disinherited comes a second blow when he hears that Sir Peter has consented to the marriage of Charles and Maria. As a last card, Joseph brings Lady Sneerwell to the scene. The woman declares that Charles has promised to make her his wife. Snake, however, turns traitor and confesses the plot to discredit Charles. Lady Teazle, giving Joseph and Lady Sneerwell a bitter rebuke, dismisses them. Realizing the many discomforts she has caused her husband, Lady Teazle promises to henceforth be a dutiful wife.