diff --git a/src/go/types/NOTES b/src/go/types/NOTES
index 387550846b..65715fe13e 100644
--- a/src/go/types/NOTES
+++ b/src/go/types/NOTES
@@ -15,7 +15,9 @@ TODO
 ----------------------------------------------------------------------------------------------------
 KNOWN ISSUES
 
-- 'comparable' predeclared contract is not implemented yet
+- parameterized contract embedding is not working correctly
+- a non-comparable type used as type argument for a comparable contract leads to sub-optimal error
+  message (referring to missing method ==)
 - iteration over generic variables doesn't report certain channel errors (see TODOs in code)
 - cannot handle mutually recursive parameterized interfaces using themselves as type bounds
 - contract instantiation requires the type arguments to be type parameters from the type of function
diff --git a/src/go/types/examples/contracts.go2 b/src/go/types/examples/contracts.go2
index 7387e9d77c..a3cd4769a1 100644
--- a/src/go/types/examples/contracts.go2
+++ b/src/go/types/examples/contracts.go2
@@ -81,3 +81,33 @@ contract _(T) {
 	Graph /* ERROR not a contract */ (T, T)
 	( /* ERROR not a contract */ []int)
 }
+
+// The predeclared contract "comparable" describes all types
+// that support == and != comparisons.
+func cmp1(type T comparable)(x, y T) bool {
+	var _ map[T]int // T is comparable so can use it as map key
+	return x == y || x != y
+}
+
+func _() {
+	_ = cmp1(int)
+	_ = cmp1(float32)(1, 2)
+	_ = cmp1(42, 53)
+	_ = cmp1(struct{})
+	_ = cmp1([ /* ERROR does not satisfy */ ]byte)
+}
+
+func cmp2(type T1 comparable, T2 comparable)(x1, y1 T1, x2, y2 T2) bool {
+	return x1 == y1 || x2 != y2
+}
+
+contract compareTwo(A, B) {
+	comparable(A)
+	comparable(B)
+}
+
+// This does not work at the moment due to a contract embedding bug.
+// TODO(gri) fix this
+// func cmp3(type T1, T2 compareTwo)(x1, y1 T1, x2, y2 T2) bool {
+//	return x1 == y1 || x2 != y2
+// }
diff --git a/src/go/types/lookup.go b/src/go/types/lookup.go
index 030541766b..04353da498 100644
--- a/src/go/types/lookup.go
+++ b/src/go/types/lookup.go
@@ -341,6 +341,10 @@ func (check *Checker) missingMethod(V Type, T *Interface, static bool) (method,
 		// we must have a method (not a field of matching function type)
 		f, _ := obj.(*Func)
 		if f == nil {
+			// if m is the magic method == and V is comparable, we're ok
+			if m.name == "==" && Comparable(V) {
+				continue
+			}
 			return m, nil
 		}
 
diff --git a/src/go/types/predicates.go b/src/go/types/predicates.go
index fe8d94b38b..6ce06dc384 100644
--- a/src/go/types/predicates.go
+++ b/src/go/types/predicates.go
@@ -86,7 +86,10 @@ func Comparable(T Type) bool {
 	case *Array:
 		return Comparable(t.elem)
 	case *TypeParam:
-		return t.Interface().is(Comparable)
+		iface := t.Interface()
+		// If the magic method == exists, the type parameter is comparable.
+		_, m := lookupMethod(iface.allMethods, nil, "==")
+		return m != nil || iface.is(Comparable)
 	}
 	return false
 }
diff --git a/src/go/types/testdata/tmp.go2 b/src/go/types/testdata/tmp.go2
index 4d9fe75062..2123f15822 100644
--- a/src/go/types/testdata/tmp.go2
+++ b/src/go/types/testdata/tmp.go2
@@ -4,16 +4,48 @@
 
 package main
 
-contract anInt(T) {
-	T int
+type C(type T) interface {
+	m()
 }
 
-contract twoInt(K, _) {
-	anInt(K)
+type W(type T) interface {
+	C(T)
 }
 
-func f(type K, V twoInt)()
+func _(type T W(T))(x T) {
+	// x.m() // TODO(gri) this doesn't work at the moment - embedding bug
+}
 
-func _ () {
-	f(int, int)()
-}
\ No newline at end of file
+/*
+contract C(T) {
+	T m()
+}
+
+contract W(T) {
+	C(T)
+}
+
+func _(type T W)(x T) {
+	x.m()
+}
+*/
+
+/*
+contract comparable(T) {
+	T foo() bool
+}
+
+contract compareTwo(A, B) {
+	comparable(A)
+	//comparable(B)
+}
+
+func _(type T1, T2 compareTwo)(x1, y1 T1) bool {
+	// return x1 == y1
+	return x1.foo()
+}
+
+func _(type T comparable)(x, y T) bool {
+	return x == y || x != y
+}
+*/
\ No newline at end of file
diff --git a/src/go/types/universe.go b/src/go/types/universe.go
index ff5b89118a..ff59aad90f 100644
--- a/src/go/types/universe.go
+++ b/src/go/types/universe.go
@@ -188,6 +188,51 @@ func DefPredeclaredTestFuncs() {
 	def(newBuiltin(_Trace))
 }
 
+func defPredeclaredContracts() {
+	// The "comparable" contract can be envisioned as defined like
+	//
+	// contract comparable(T) {
+	//         == (T) untyped bool
+	//         != (T) untyped bool
+	// }
+	//
+	// == and != cannot be user-declared but we can declare
+	// a magic method == and check for its presence when needed.
+	// (A simpler approach that simply looks for a magic type
+	// bound interface is problematic: comparable might be embedded,
+	// which in turn leads to the embedding of the magic type bound
+	// interface and then we cannot easily look for that interface
+	// anymore.)
+
+	// Define interface { ==() }. We don't care about the signature
+	// for == so leave it empty except for the receiver, which is
+	// set up later to match the usual interface method assumptions.
+	sig := new(Signature)
+	eql := NewFunc(token.NoPos, nil, "==", sig)
+	iface := NewInterfaceType([]*Func{eql}, nil).Complete()
+
+	// The interface is parameterized with a single
+	// type parameter to match the comparable contract.
+	pname := NewTypeName(token.NoPos, nil, "T", nil)
+	pname.typ = &TypeParam{0, pname, 0, &emptyInterface}
+
+	// The type bound interface needs a name so we can attach the
+	// type parameter and to match the usual set up of contracts.
+	iname := NewTypeName(token.NoPos, nil, "comparable_bound", nil)
+	named := NewNamed(iname, iface, nil)
+	named.tparams = []*TypeName{pname}
+	sig.recv = NewVar(token.NoPos, nil, "", named) // complete == signature
+
+	// set up the contract
+	obj := NewContract(token.NoPos, nil, "comparable")
+	obj.typ = new(contractType) // mark contract as fully set up
+	obj.color_ = black
+	obj.TParams = named.tparams
+	obj.Bounds = []*Named{named}
+
+	def(obj)
+}
+
 func init() {
 	Universe = NewScope(nil, token.NoPos, token.NoPos, "universe")
 	Unsafe = NewPackage("unsafe", "unsafe")
@@ -197,6 +242,7 @@ func init() {
 	defPredeclaredConsts()
 	defPredeclaredNil()
 	defPredeclaredFuncs()
+	defPredeclaredContracts()
 
 	universeIota = Universe.Lookup("iota").(*Const)
 	universeByte = Universe.Lookup("byte").(*TypeName).typ.(*Basic)