After their constant feuding costs them a big sales account with Mr. Applegate, the head of a drug sales firm, William "Willy" Hobbs and Claude Augustus Horton, co-owners of a drug manufacturing company that features "Horton and Hobbs' Pink Pills," agree to wrestle each other for sole ownership of the company. According to the terms established by George Dilwig, the company's harassed lawyer, the winner of the wrestling match takes over the business, while the loser must become the winner's obedient valet for one year. Although evenly matched, Hobbs loses when he crashes into Mr. Applegate and falls on the floor. Embarrassed by his new job, Hobbs, who must pay a one-hundred-dollar fine every time he insults Horton, sends his fiancée, Florence Cole, to Florida. When Horton's outrageous orders prove too much for Hobbs, he calls Dilwig, who has since committed himself to a sanitarium, and solicits his advice. Dilwig tells Hobbs to be excessively nice to Horton and to insinuate that he is involved with his wife Nettie. After Hobbs carries out Dilwig's plan, Horton is overcome with jealousy and telephones Dilwig, who tells him to humiliate Hobbs into breaking the contract. Horton finds Florence in Florida and, after informing her about Hobbs and Nettie, suggests that she come to his house with Tony Toler, a company salesman. When Hobbs learns that Nettie and Horton are throwing a party and have invited Florence, he sends the other servants on a two-week vacation and hires Southern flirt Gertie Green and a gang of her questionable friends as substitutes. During the party, Hobbs is seen in his valet's uniform by Florence, while Tony and Mr. Applegate defraud Horton by pushing a merger between Horton's company and Applegate's failing concern. A humiliated Hobbs again telephones Dilwig, who suggests that he tear up his contract with Horton. Then, Dilwig instructs Horton to destroy his contract with Applegate. After a series of complications concerning the retrieval of the two contracts, Horton is rescued from the merger, while Hobbs learns from Dilwig that his contract with Horton is invalid because neither one of them had signed it. After all misunderstandings are resolved, Horton and Hobbs return to their respective women and to their company.