A Concurrent Affair

Lunching at Clockworks, Gwen and Terry are both attracted to James Collins, a young man who's a new client, but they both agree (Gwen very reluctantly) that he should be off-limits while he's involved with them professionally. He proves too tempting for Terry, though, and she agrees to go out with him the first time he asks. He promises not to tell Gwen. However, the first time he's alone with Gwen he goes through the same routine with her, with the same results. When James comes by the apartment later, both women act like they're seeing him for the first time since their business lunch. As soon as he's alone with either one of them, he begins to put a move on her.
Terry confesses her guilt to Danny, who sees it merely as fodder for a story. When Guy and Danny both agree Terry shouldn't tell Gwen the truth, she decides that she should do it anyway. At the restaurant Terry and Gwen are both about to confess to each other when they see James there kissing another woman. Terry tells Gwen

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S01E06 - The Rules