Cheerful and mischievous lad Gritsko offers young Parasya his hand and his heart on the first day of the fair in Sorochyntsi. The girl's father, Cherevik, presents no objection – her stepmother, however, is furious, and refuses to recognise their relationship; Cherevik drunkenly relents. Gritsko alone bemoans his sadness, whereupon a gypsy presents him a deal – Gritsko will sell his oxen to the gypsy if the latter can successfully make Parasya's parents accept their union.
