Terms and Conditions opens with a chapter from Iris’s point of view. The novel opens with Iris and Cal waiting for Declan, Cal’s older brother and Iris’s boss, to arrive at the engagement party Iris planned for Declan. Iris informs Cal that her job transfer has been rejected, and then conversation turns to the faux engagement for which Iris is throwing a party. Iris has helped Declan find a fake fiancée and arranged for her to marry him and have his child, all to fulfill the requirements Declan’s grandfather set for Declan to receive his inheritance—becoming CEO of Dreamland, the family company.

On meeting Declan, however, the woman Iris recruited withdraws her agreement. Iris, invested in Declan’s plans, refuses to give up. At a loss for any other option, and without Declan’s agreement, Iris declares to the wedding planner that she herself is the mystery fiancée. Declan is clearly upset, but Iris is determined not to let their plan fail.

Angry over Iris’s rash actions, Declan requests a few minutes alone before the party and questions her motives. For a moment, Declan believes Iris may be infatuated with him and asks her this directly.