diff --git a/src/test/contracts/pledge.religo b/src/test/contracts/pledge.religo
new file mode 100644
index 000000000..394435397
--- /dev/null
+++ b/src/test/contracts/pledge.religo
@@ -0,0 +1,38 @@
+(* Pledge-Distribute — Accept money from a number of contributors and then donate
+   to an address designated by an oracle *)
+
+(* A lot of people (myself included) seem to expect an oracle to be more than it is.
+   That is, they expect it to be something complicated when it's actually pretty simple.
+   An oracle is just an authorized source of information external to the chain, like an
+   arbiter or moderator. For example, it's not possible to do an HTTP request to get
+   info from a weather site directly using a smart contract. So instead what you
+   do is make (or use) an oracle service which uploads the data to the chain so
+   that contracts can use it.
+*)
+
+type storage = address
+
+type parameter =
+  | Donate(unit)
+  | Distribute((unit => list(operation)))
+
+let donate = ((p,s): (unit, storage)) : (list(operation), storage) => {
+  (([]: list(operation)), s);
+};
+
+let distribute = ((p,s): ((unit => list(operation)), storage)) : (list(operation), storage) => {
+  if (Tezos.sender == s) {
+    (p(),s);
+  }
+  else {
+    (failwith("You're not the oracle for this distribution."):
+      (list(operation), storage));
+  };
+};
+
+let main = ((p,s): (parameter, storage)) : (list(operation), storage) => {
+  switch (p) {
+    | Donate => donate (((),s))
+    | Distribute msg => distribute ((msg,s))
+  };
+};
diff --git a/src/test/pledge_tests.ml b/src/test/pledge_tests.ml
new file mode 100644
index 000000000..189e45a82
--- /dev/null
+++ b/src/test/pledge_tests.ml
@@ -0,0 +1,88 @@
+open Trace
+open Test_helpers
+open Ast_simplified
+
+
+let retype_file f =
+  let%bind simplified  = Ligo.Compile.Of_source.compile f (Syntax_name "reasonligo") in
+  let%bind typed,state = Ligo.Compile.Of_simplified.compile simplified in
+  ok (typed,state)
+
+let get_program =
+  let s = ref None in
+  fun () -> match !s with
+    | Some s -> ok s
+    | None -> (
+        let%bind program = retype_file "./contracts/pledge.religo" in
+        s := Some program ;
+        ok program
+      )
+
+let compile_main () =
+  let%bind simplified      = Ligo.Compile.Of_source.compile "./contracts/pledge.religo" (Syntax_name "reasonligo") in
+  let%bind typed_prg,_ = Ligo.Compile.Of_simplified.compile simplified in
+  let%bind mini_c_prg      = Ligo.Compile.Of_typed.compile typed_prg in
+  let%bind michelson_prg   = Ligo.Compile.Of_mini_c.aggregate_and_compile_contract mini_c_prg "main" in
+  let%bind (_contract: Tezos_utils.Michelson.michelson) =
+    (* fails if the given entry point is not a valid contract *)
+    Ligo.Compile.Of_michelson.build_contract michelson_prg in
+  ok ()
+
+let (oracle_addr , oracle_contract) =
+  let open Proto_alpha_utils.Memory_proto_alpha in
+  let id = List.nth dummy_environment.identities 0 in
+  let kt = id.implicit_contract in
+  Protocol.Alpha_context.Contract.to_b58check kt , kt
+
+let (stranger_addr , stranger_contract) =
+  let open Proto_alpha_utils.Memory_proto_alpha in
+  let id = List.nth dummy_environment.identities 1 in
+  let kt = id.implicit_contract in
+  Protocol.Alpha_context.Contract.to_b58check kt , kt
+
+let empty_op_list =
+  (e_typed_list [] t_operation)
+let empty_message = e_lambda (Var.of_name "arguments")
+  (Some t_unit) (Some (t_list t_operation))
+  empty_op_list
+
+
+let pledge () =
+  let%bind program, _ = get_program () in
+  let storage = e_address oracle_addr in
+  let parameter = e_unit () in
+  let options = Proto_alpha_utils.Memory_proto_alpha.make_options
+                  ~sender:oracle_contract
+                  ~amount:(Memory_proto_alpha.Protocol.Alpha_context.Tez.one) ()
+  in
+  expect_eq ~options program "donate"
+    (e_pair parameter storage)
+    (e_pair (e_list []) storage)
+
+let distribute () =
+  let%bind program, _ = get_program () in
+  let storage = e_address oracle_addr in
+  let parameter =  empty_message in
+  let options = Proto_alpha_utils.Memory_proto_alpha.make_options
+                  ~sender:oracle_contract ()
+  in
+  expect_eq ~options program "distribute"
+    (e_pair parameter storage)
+    (e_pair (e_list []) storage)
+
+let distribute_unauthorized () =
+  let%bind program, _ = get_program () in
+  let storage = e_address oracle_addr in
+  let parameter =  empty_message in
+  let options = Proto_alpha_utils.Memory_proto_alpha.make_options
+                  ~sender:stranger_contract ()
+  in
+  expect_string_failwith ~options program "distribute"
+    (e_pair parameter storage)
+    "You're not the oracle for this distribution."
+
+let main = test_suite "Pledge & Distribute" [
+    test "donate" pledge ;
+    test "distribute" distribute ;
+    test "distribute (unauthorized)" distribute_unauthorized ;
+]
diff --git a/src/test/test.ml b/src/test/test.ml
index 617e1cf77..c21411092 100644
--- a/src/test/test.ml
+++ b/src/test/test.ml
@@ -17,5 +17,6 @@ let () =
     Time_lock_tests.main ;
     Hash_lock_tests.main ;
     Time_lock_repeat_tests.main ;
+    Pledge_tests.main ;
   ] ;
   ()