Zel's already been disarmed once, he's already been injured. This isn't a life or death situation in which he absolutely has to keep fighting, he'd mostly just entered to see how well his skills stacked up to the other competitors. Against this guy, he finds himself lacking. It's frustrating, not because he's losing but because he likely has a long way to go to get himself anywhere near the abilities he had back home.

Zelgadis retrieves his sword, but rather than continue to get his ass handed to him, he decides that it's probably time to call it here. He sheaths his sword and gives Dust a polite little bow.

"It would appear that I've overestimated my abilities. This victory is yours."