Balian takes his knight's oath from his dying father. As a knight, Balian is expected to protect the king and the kingdom as well as follow a moral code that emphasizes qualities such as bravery, courtesy and honor.
Guy of Lusignan surrenders the city of Jerusalem to Ayyubid sultan Salah ad-Din under the terms that none of the Christians residing in the city will be harmed. When Guy asks what Jerusalem is worth, Salah ad-Din indicates that Jerusalem is worth both nothing and everything. Jerusalem, the Holy Land, is important to both parties because their respective religions, Christianity and Islam, were believed to originate from the city. Ultimately, the Muslim armies under Salah ad-Din captured or killed most of the Christian forces, and thus Muslims gained military power over Jerusalem.