diff --git a/src/contracts/lambda.ligo b/src/contracts/lambda.ligo
new file mode 100644
index 000000000..cc426e83d
--- /dev/null
+++ b/src/contracts/lambda.ligo
@@ -0,0 +1,6 @@
+function f (const x : unit) : unit is
+  begin skip end with unit
+
+function main (const p : unit ; const s : unit) : unit is
+  var y : unit := f(unit) ;
+  begin skip end with y
diff --git a/src/contracts/parser-bad-reported-term.ligo b/src/contracts/parser-bad-reported-term.ligo
new file mode 100644
index 000000000..05dc69e3e
--- /dev/null
+++ b/src/contracts/parser-bad-reported-term.ligo
@@ -0,0 +1,6 @@
+function f (const x : unit) : unit is
+  begin skip end with unit
+
+function main (const p : unit ; const s : unit) : unit is
+  behin skip end with f unit
+// the srcloc is correct but the reported term is "skip" instead of "behin".
diff --git a/src/test/integration_tests.ml b/src/test/integration_tests.ml
index fcaea7093..92e88ed1e 100644
--- a/src/test/integration_tests.ml
+++ b/src/test/integration_tests.ml
@@ -508,6 +508,12 @@ let lambda_mligo () : unit result =
   let make_expected = (e_unit ()) in
   expect_eq program "main" make_input make_expected
 
+let lambda_ligo () : unit result =
+  let%bind program = type_file "./contracts/lambda.ligo" in
+  let make_input = e_pair (e_unit ()) (e_unit ()) in
+  let make_expected = (e_unit ()) in
+  expect_eq program "main" make_input make_expected
+
 let lambda2_mligo () : unit result =
   let%bind program = mtype_file "./contracts/lambda2.mligo" in
   let make_input = e_pair (e_unit ()) (e_unit ()) in
@@ -574,6 +580,7 @@ let main = test_suite "Integration (End to End)" [
     (* test "failwith mligo" failwith_mligo ; *)
     (* test "guess string mligo" guess_string_mligo ; WIP? *)
     test "lambda mligo" lambda_mligo ;
+    test "lambda ligo" lambda_ligo ;
     (* test "lambda2 mligo" lambda2_mligo ; *)
     test "website1 ligo" website1_ligo ;
     test "website2 ligo" website2_ligo ;