Gunnar was in the town and was plotting against Grettir's life. Wherever he went Gunnar dogged his steps wherever he found a chance of getting near him. One day Grettir was sitting in a booth and drinking, because he wanted to keep out of Gunnar's way. Suddenly there was a bang at the door, so hard that it broke in pieces, and in rushed four men armed and attacked Grettir. They were Gunnar with his followers. Grettir seized his arms which were hanging above his head and ran into a corner, where he defended himself, holding his shield before him, and hewing with his sword. They made little way against him. One blow he succeeded in delivering upon one of Gunnar's followers, who needed nothing more. Then Grettir advanced, driving them before him out of the booth, and killing another of them. Gunnar would fain have got away with his men, but on reaching the door he caught his foot on the doorstep, fell over and was not able to recover himself at once. He held his shield before him and retreated as Grettir pressed him hard. Then Grettir sprang on to the crossbenches near the door. Gunnar's hands and the shield were still inside the door, and Grettir struck down between him and the shield, cutting off both his hands at the wrist. He fell backwards out of the door, and Grettir gave him his death-blow. Then the man who was behind him got on his feet and ran off at once to tell the jarl what had happened. Sveinn was furious, and called the assembly to meet there and then in the town. When Thorfinn and Thorsteinn Dromund heard the news, they called all their followers and friends together and went to the meeting in force. The jarl was very wroth, and it was no easy matter to get speech with him. Thorfinn was the first to come before the jarl, and he said: "I have come to offer an honourable atonement for the man who has been slain by Grettir. The judgment shall remain with you alone if you but spare his life."

The jarl replied in great wrath: "It is too late to beg for Grettir's life, and you have no case that I can see. He has killed three brothers, one at the feet of the other; men of noble minds who would not weigh each other against their purses. Now, Thorfinn, it will not avail you to beg for Grettir; I will not do such a wrong in the land as to accept atonement for such a crime as this."

Then Bersi the son of Skaldtorfa came up and begged the jarl to accept blood-money. "Grettir," he said, "is a man of high birth and is my good friend. I offer you what I possess. May you see, my lord, that it is better by sparing one man to earn the goodwill of many and to fix the penalty yourself than to refuse honourable terms and risk whether you can arrest the man or not."

The jarl replied: "You do right, Bersi; and herein as ever you show your worth. But I do not mean to break the laws of the land by granting life to a man who has forfeited it."

Then Thorsteinn Dromund came forward, and he, too, offered blood-money on behalf of Grettir, adding many fair words thereto.

The jarl asked what moved him to offer blood-money for the man. Thorsteinn said Grettir was his brother. The jarl said he had not known that.

"It shows a manly spirit in you," he said, "that you want to help him. But as I am determined not to accept blood-money in this case, I must treat the requests of all of you alike. I must have Grettir's life whatever it cost, directly I can get him."

Then the jarl rose quickly up and refused to hear any more about atonement. They all went home with Thorsteinn and made their preparations, whereupon the jarl ordered all the men of his guard under arms and went forth with a large force. Before they came up, Grettir's friends had made ready to defend the house. Thorfinn, Thorsteinn, Grettir himself, and Bersi were in the forefront, each with a large force of followers behind him. The jarl summoned them to give up Grettir, and not to bring trouble on themselves. They repeated their former offers, but the jarl would not listen to them. Thorfinn and Thorsteinn said that more was at stake for the jarl than the taking of Grettir's life. "One fate shall fall upon us all," they cried, "and men shall say that you have given much for the life of one man when we are all laid low with the ground."

The jarl said he would spare none of them, and they were on the very verge of a battle when many of the well-disposed men came up to him and begged him not to land himself in such a difficulty. He should bear in mind that these men would work great havoc among his own followers before they fell. The jarl thought this counsel was wise and let himself be somewhat appeased. Then the terms of atonement were settled. Thorfinn and Thorsteinn were ready to pay so long as Grettir's life was spared. The jarl said: "You must know that although I agree to this compromise, I do not consider it a full amnesty. Only I have no mind to fight against my own men, although they appear to hold me of little account in the matter."

Thorfinn said: "Yours is all the greater honour, my lord, that you will have the fixing of the penalty yourself."

The jarl said that Grettir should have leave from him to depart from the country in peace for Iceland, directly there was a ship leaving, if so it seemed good to them. They agreed and paid the money to the jarl to his satisfaction. They parted with little friendship. Grettir went with Thorfinn after bidding an affectionate farewell to his brother Thorsteinn.

Thorfinn earned great honour for the support which he had given Grettir against such odds as he had to deal with. Not one of the men who had helped Grettir was ever received into favour again with the jarl, excepting Bersi.

Grettir then spoke:

And again:

Grettir returned with Thorfinn to the North and stayed with him until he found a ship with some traders who were bound for Iceland. Thorfinn gave him many valuable garments and a coloured saddle with a bridle. They parted with friendship, and Thorfinn invited him to come and see him if ever he returned to Norway.