Gawain of Orkney doesn't need a squire. He's yet to make it to King Arthur's court to be knighted, and, if he does need a squire later, he has a few brothers in the hinterlands who will do. For his part, Terence is perfectly happy taking care of his foster father, the hermit Trevisant. He is a kind boy and an excellent cook, though granted a bit confused at present. Just recently the trees had started talking to him.
Trevisant, however, has other ideas. After a shared pot of excellent stewed rabbit, the hermit tells the pair that they are destined to achieve great things together. Terence tells Gawain that it must be so, since Trevisant has the gift to see the future as if it were the past.