diff --git a/src/go/types/contracts.go b/src/go/types/contracts.go
new file mode 100644
index 0000000000..815411d7dd
--- /dev/null
+++ b/src/go/types/contracts.go
@@ -0,0 +1,108 @@
+// Copyright 2019 The Go Authors. All rights reserved.
+// Use of this source code is governed by a BSD-style
+// license that can be found in the LICENSE file.
+
+// This file implements type-checking of contracts.
+
+package types
+
+import (
+	"go/ast"
+	"go/token"
+)
+
+// TODO(gri) Handling a contract like a type is problematic because it
+// won't exclude a contract where we only permit a type. Investigate.
+
+func (check *Checker) contractType(ctyp *Contract, e *ast.ContractType) {
+	scope := NewScope(check.scope, token.NoPos, token.NoPos, "contract type parameters")
+	check.scope = scope
+	defer check.closeScope()
+	check.recordScope(e, scope)
+
+	// collect type parameters
+	var tparams []*TypeName
+	for index, name := range e.TParams {
+		tpar := NewTypeName(name.Pos(), check.pkg, name.Name, nil)
+		NewTypeParam(tpar, index) // assigns type to tpar as a side-effect
+		check.declare(scope, name, tpar, scope.pos)
+		tparams = append(tparams, tpar)
+	}
+	ctyp.TParams = tparams
+
+	// collect constraints
+	for _, c := range e.Constraints {
+		if c.Param != nil {
+			// If a type name is present, it must be one of the contract's type parameters.
+			tpar := scope.Lookup(c.Param.Name)
+			if tpar == nil {
+				check.errorf(c.Param.Pos(), "%s not declared by contract", c.Param.Name)
+				continue // TODO(gri) should try fall through
+			}
+			if c.Type == nil {
+				check.invalidAST(c.Param.Pos(), "missing method or type constraint")
+				continue
+			}
+			typ := check.typ(c.Type)
+			if c.MName != nil {
+				// If a method name is present, it must be unique for the respective
+				// type parameter, and c.Type is a method signature (guaranteed by AST).
+				sig, _ := typ.(*Signature)
+				if sig == nil {
+					check.invalidAST(c.Type.Pos(), "invalid method type")
+				}
+				// TODO(gri) what requirements do we have for sig.scope, sig.recv?
+			} else {
+				// no method name => we have a type constraint
+				var why string
+				if !check.constraint(typ, &why) {
+					check.errorf(c.Type.Pos(), "invalid type constraint %s (%s)", typ, why)
+					continue
+				}
+			}
+		} else {
+			// no type name => we have an embedded contract
+			panic("embedded contracts unimplemented")
+		}
+	}
+}
+
+func (check *Checker) constraint(typ Type, why *string) bool {
+	switch t := typ.(type) {
+	case *Basic:
+		// ok
+	case *Array:
+		return check.constraint(t.elem, why)
+	case *Slice:
+		return check.constraint(t.elem, why)
+	case *Struct:
+		for _, f := range t.fields {
+			if !check.constraint(f.typ, why) {
+				return false
+			}
+		}
+	case *Pointer:
+		return check.constraint(t.base, why)
+	case *Tuple:
+		panic("tuple type checking unimplemented")
+	case *Signature:
+		panic("signature type checking unimplemented")
+	case *Interface:
+		panic("interface type checking unimplemented")
+	case *Map:
+		return check.constraint(t.key, why) && check.constraint(t.elem, why)
+	case *Chan:
+		return check.constraint(t.elem, why)
+	case *Named:
+		*why = check.sprintf("%s is not a type literal", t)
+		return false
+	case *Contract:
+		*why = check.sprintf("%s is not a type", t)
+		return false
+	case *TypeParam:
+		// ok
+	default:
+		unreachable()
+	}
+	return true
+}
diff --git a/src/go/types/testdata/contracts.src b/src/go/types/testdata/contracts.src
index c432ed0b83..e13f8cba50 100644
--- a/src/go/types/testdata/contracts.src
+++ b/src/go/types/testdata/contracts.src
@@ -11,14 +11,21 @@ contract _(A, B, C){}
 contract _(A, B, A /* ERROR A redeclared */ ){}
 
 // For now we also allow this form of contract declaration.
+// TODO(gri) probably not a good idea. Disallow a local level for sure.
 type _ contract(){}
 type _ contract(A, B, A /* ERROR A redeclared */ ){}
 
 // method constraints
 contract _(A) { A } /* ERROR expected type */
-contract _(A) { A m() }
+contract _(A) { A m(); A add(A) int }
 contract _(A) { B /* ERROR B not declared by contract */ m() }
 
 // type constraints
 contract _(A) { A A }
 contract _(A) { A B /* ERROR undeclared name: B */ }
+contract _(A) { A int }
+contract _(A) { A []int }
+contract _(A) { A []B /* ERROR undeclared name: B */ }
+contract C(A) { A [ /* ERROR invalid type constraint */ ]C }
+contract _(A) { A struct { f int } }
+contract _(A, B) { A B }
diff --git a/src/go/types/type.go b/src/go/types/type.go
index 4b17446fb7..0e57e835d0 100644
--- a/src/go/types/type.go
+++ b/src/go/types/type.go
@@ -499,7 +499,7 @@ func (t *Named) AddMethod(m *Func) {
 
 // A Contract represents a contract.
 type Contract struct {
-	TParams []*TypeName
+	TParams []*TypeName // TODO(gri) should this be a TypeParam?
 }
 
 func NewContract(tparams []*TypeName) *Contract {
diff --git a/src/go/types/typexpr.go b/src/go/types/typexpr.go
index f0ed1b62f4..2bb42dd856 100644
--- a/src/go/types/typexpr.go
+++ b/src/go/types/typexpr.go
@@ -801,57 +801,3 @@ func embeddedFieldIdent(e ast.Expr) *ast.Ident {
 	}
 	return nil // invalid embedded field
 }
-
-func (check *Checker) contractType(ctyp *Contract, e *ast.ContractType) {
-	scope := NewScope(check.scope, token.NoPos, token.NoPos, "contract type parameters")
-	check.scope = scope
-	defer check.closeScope()
-	check.recordScope(e, scope)
-
-	// collect type parameters
-	var tparams []*TypeName
-	for index, name := range e.TParams {
-		tpar := NewTypeName(name.Pos(), check.pkg, name.Name, nil)
-		NewTypeParam(tpar, index) // assigns type to tpar as a side-effect
-		check.declare(scope, name, tpar, scope.pos)
-		tparams = append(tparams, tpar)
-	}
-	ctyp.TParams = tparams
-
-	// collect constraints
-	for _, c := range e.Constraints {
-		if c.Param != nil {
-			// If a type name is present, it must be one of the contract's type parameters.
-			tpar := scope.Lookup(c.Param.Name)
-			if tpar == nil {
-				check.errorf(c.Param.Pos(), "%s not declared by contract", c.Param.Name)
-				continue // TODO(gri) should try fall through
-			}
-			if c.Type == nil {
-				check.invalidAST(c.Param.Pos(), "missing method or type constraint")
-				continue
-			}
-			typ := check.typ(c.Type)
-			if c.MName != nil {
-				// If a method name is present, it must be unique, and c.Type
-				// must must be a method signature (guaranteed by AST).
-				sig, _ := typ.(*Signature)
-				if sig == nil {
-					check.invalidAST(c.Type.Pos(), "invalid method type")
-				}
-				// TODO(gri) what requirements do we have for sig.scope, sig.recv?
-			} else {
-				// no method name => we have a type constraint
-				check.typeConstraint(typ)
-			}
-		} else {
-			// no type name => we have an embedded contract
-			panic("embedded contracts unimplemented")
-		}
-	}
-}
-
-func (check *Checker) typeConstraint(typ Type) {
-	// TODO(gri) verify that we have a valid type constraint
-	// - determine exact rules
-}