diff --git a/src/bin/expect_tests/contract_tests.ml b/src/bin/expect_tests/contract_tests.ml
index facee666d..795e554ea 100644
--- a/src/bin/expect_tests/contract_tests.ml
+++ b/src/bin/expect_tests/contract_tests.ml
@@ -1144,4 +1144,51 @@ let%expect_test _ =
     * Visit our documentation: https://ligolang.org/docs/intro/what-and-why/
     * Ask a question on our Discord: https://discord.gg/9rhYaEt
     * Open a gitlab issue: https://gitlab.com/ligolang/ligo/issues/new
-    * Check the changelog by running 'ligo changelog' |}]
\ No newline at end of file
+    * Check the changelog by running 'ligo changelog' |}]
+
+let%expect_test _ =
+  run_ligo_bad [ "compile-contract" ; bad_contract "create_contract_toplevel.mligo" ; "main" ] ;
+  [%expect {|
+    ligo: in file "create_contract_toplevel.mligo", line 4, character 35 to line 8, character 8. No free variable allowed in this lambda: store  {"expression":"CREATE_CONTRACT(lambda (#P : ( nat * string ):Some(( nat * string ))) : None return let rhs#752 = #P in let p = rhs#752.0 in let s = rhs#752.1 in ( list[] : (TO_list(operation)) , store ) , NONE() : (TO_option(key_hash)) , 300000000mutez , \"un\")","location":"in file \"create_contract_toplevel.mligo\", line 4, character 35 to line 8, character 8"}
+
+
+     If you're not sure how to fix this error, you can
+     do one of the following:
+
+    * Visit our documentation: https://ligolang.org/docs/intro/what-and-why/
+    * Ask a question on our Discord: https://discord.gg/9rhYaEt
+    * Open a gitlab issue: https://gitlab.com/ligolang/ligo/issues/new
+    * Check the changelog by running 'ligo changelog' |}] ;
+
+  run_ligo_bad [ "compile-contract" ; bad_contract "create_contract_var.mligo" ; "main" ] ;
+  [%expect {|
+    ligo: in file "create_contract_var.mligo", line 6, character 35 to line 10, character 5. No free variable allowed in this lambda: a  {"expression":"CREATE_CONTRACT(lambda (#P : ( nat * int ):Some(( nat * int ))) : None return let rhs#755 = #P in let p = rhs#755.0 in let s = rhs#755.1 in ( list[] : (TO_list(operation)) , a ) , NONE() : (TO_option(key_hash)) , 300000000mutez , 1)","location":"in file \"create_contract_var.mligo\", line 6, character 35 to line 10, character 5"}
+
+
+     If you're not sure how to fix this error, you can
+     do one of the following:
+
+    * Visit our documentation: https://ligolang.org/docs/intro/what-and-why/
+    * Ask a question on our Discord: https://discord.gg/9rhYaEt
+    * Open a gitlab issue: https://gitlab.com/ligolang/ligo/issues/new
+    * Check the changelog by running 'ligo changelog' |}] ;
+  run_ligo_good [ "compile-contract" ; contract "create_contract.mligo" ; "main" ] ;
+  [%expect {|
+    { parameter string ;
+      storage string ;
+      code { PUSH string "un" ;
+             PUSH mutez 300000000 ;
+             NONE key_hash ;
+             CREATE_CONTRACT
+               { parameter nat ;
+                 storage string ;
+                 code { PUSH string "one" ; NIL operation ; PAIR ; DIP { DROP } } } ;
+             PAIR ;
+             DUP ;
+             CAR ;
+             NIL operation ;
+             SWAP ;
+             CONS ;
+             DIP { DIP { DUP } ; SWAP ; CDR } ;
+             PAIR ;
+             DIP { DROP 2 } } } |}]
diff --git a/src/test/contracts/create_contract.mligo b/src/test/contracts/create_contract.mligo
new file mode 100644
index 000000000..8c405102c
--- /dev/null
+++ b/src/test/contracts/create_contract.mligo
@@ -0,0 +1,10 @@
+type return = operation list * string
+
+let main (action, store : string * string) : return =
+  let toto : operation * address = Tezos.create_contract
+    (fun (p, s : nat * string) -> (([] : operation list), "one")) 
+    (None: key_hash option) 
+    300tz 
+    "un"
+  in
+  ([toto.0], store)
\ No newline at end of file
diff --git a/src/test/contracts/negative/create_contract_toplevel.mligo b/src/test/contracts/negative/create_contract_toplevel.mligo
new file mode 100644
index 000000000..051464c11
--- /dev/null
+++ b/src/test/contracts/negative/create_contract_toplevel.mligo
@@ -0,0 +1,10 @@
+type return = operation list * string
+
+let main (action, store : string * string) : return =
+  let toto : operation * address = Tezos.create_contract
+    (fun (p, s : nat * string) -> (([] : operation list), store)) 
+    (None: key_hash option) 
+    300tz 
+    "un"
+  in
+  ([toto.0], store)
\ No newline at end of file
diff --git a/src/test/contracts/negative/create_contract_var.mligo b/src/test/contracts/negative/create_contract_var.mligo
new file mode 100644
index 000000000..9bd0a3ffb
--- /dev/null
+++ b/src/test/contracts/negative/create_contract_var.mligo
@@ -0,0 +1,12 @@
+type return = operation list * string
+
+let a : int = 2
+
+let main (action, store : string * string) : return =
+  let toto : operation * address = Tezos.create_contract
+    (fun (p, s : nat * int) -> (([] : operation list), a)) 
+    (None: key_hash option) 
+    300tz 
+    1 
+  in
+  ([toto.0], store)
\ No newline at end of file