noun
that kind; that sort; fellow
Often used disparagingly to refer to a person or type of person, implying they are of a certain (usually undesirable) kind. Can also be used neutrally in some contexts.
ああいう手合いには気をつけろ。
Watch out for that kind of guy.
彼はすぐに嘘をつく手合いだ。
He's the sort who lies easily.
noun
Refers to a competitive event or match, often in sports or games. Less common than sense 1.
明日の手合いは雨で中止になった。
Tomorrow's match was canceled due to rain.
Compound of 手 (te, 'hand') and 合い (ai, 'meeting, matching'). The 'type of person' sense likely developed from the idea of people who are matched or grouped together, while the 'competition' sense comes from the notion of hands meeting in a contest.