For a three-act plot analysis, put on your screenwriter’s hat. Moviemakers know the formula well: at the end of Act One, the main character is drawn in completely to a conflict. During Act Two, she is farthest away from her goals. At the end of Act Three, the story is resolved.
Act I
The first act really sets up the brotherhood at the center of Tortilla Flat. Danny has allowed his friends Pilon, Pablo, Jesus Maria, the Pirate, and Big Joe to move into his house, which he inherited from his grandfather. The guys form a sort of brotherhood known as Danny's friends or Danny's House.
Act II
The second act chronicles Danny's friends' hijinks and Danny's decline. Things are a lot of fun for a while, but Danny grows restless and runs off into the woods. His friends are worried about him and decide to throw a party to cheer him up when he finally comes back.
Act III
The final act reaches its climax with Danny's tragic end, which is also the end of the gang. At the party, Danny gets drunk and dances and fights with everyone he sees. He ends up running off a cliff and dying. The house burns down, and the friends all walk away, ending their brotherhood.