Danny paces with the phone in his hand, waiting to hear if he has been chosen to host the upcoming big television spectacular. When Jack Benny is announced, Danny realizes Benny is always beating him out for these kinds of parts.
Jack arrives to smooth over the friendship, and Danny goes off on him, prompting Benny to ask Danny if he thinks Benny is in league with the devil. Danny isn't easily talked out of the concept, and Benny suffers a "dream sequence" that night wherein the devil tells him he has to let Danny have the TV special.
Benny visits Danny, and offers Danny in exchange for the spectacular a contract with the devil, which Danny enjoys, signing to go along with the gag. The longer Benny sticks with "the gag," the more uncomfortable Danny and Kathy become.
Jack leaves with Danny's contract and soul, and the dreamer of the dream sequence is revealed.
Everything is resolved, so Jack brings the good news that his scheduling conflicts mean the sponsors have decided to go with Danny, and Jack has brought the sponsor along to meet Danny.