Fred, Scrooge's nephew who each year invites his uncle to his home in order to share in the Christmas festivities is observed by Scrooge and the ghost of Christmas Present, a jolly giant.
In Stave III, Scrooge finds his nephew laughing his contagious laughter that sets his company to joviality, as well. Fred tells his family and friends that he thinks that he "shook him" yesterday when he invited his uncle to Christmas dinner. After dinner and dessert--there is no mention of what they have eaten, but perhaps they have eaten goose as the Crachitts have; then, they all have tea, Scrooge's niece played the harp and her piece was a "simple little air" that reminded Scrooge of his youth. After a while, the company played "at forfeits." First, there is a game of blind-man's bluff in which Topper chases after the "plump sister" on purpose. Then, there is a game of "How, When, and Where" in which even Scrooge participates, knowing his voice will not be heard. Following this game is another called "Yes and No," in Fred has to think of something and the others guess what it is. The butt of this game is Scrooge himself. But, the charitable Fred drinks some mulled wine to Scrooge's health.
At Fred's party, the guests first have dinner and dessert, and then they have tea. Fred's party features music, and all the guests join in. They are gifted at playing music, including a Glee and Catch, and Fred's wife plays the harp. Then, the guests play children's games such as forfeits and blind-man's bluff. They also play a game called How, When, and Where and a game called Yes and No, during which Fred thinks of something that they must guess. They play with abandon, acting like children, and a guest called Topper chases one of the women during blind-man's bluff and knocks over fire-irons and chairs in his pursuit of her. During Yes and No, Fred describes a disagreeable animal who lives in London and occasionally growls and grunts. Eventually, one of the other guests correctly guesses that Fred is describing his uncle, Scrooge.