diff --git a/collects/scribblings/reference/class.scrbl b/collects/scribblings/reference/class.scrbl
index 36f85ee5dc..42a494c3a0 100644
--- a/collects/scribblings/reference/class.scrbl
+++ b/collects/scribblings/reference/class.scrbl
@@ -1503,10 +1503,11 @@ Produces a contract for a class.
 
 There are two major categories of contracts listed in a @scheme[class/c]
 form: external and internal contracts. External contracts govern behavior
-when methods or fields are accessed via an object of that class. Internal
-contracts govern behavior when method or fields are accessed within the
-class hierarchy.  This separation allows for stronger contracts for class
-clients and weaker contracts for subclasses.
+when an object is instantiated from a class or when methods or fields are
+accessed via an object of that class. Internal contracts govern behavior
+when method or fields are accessed within the class hierarchy.  This
+separation allows for stronger contracts for class clients and weaker
+contracts for subclasses.
 
 Method contracts must contain an additional initial argument which corresponds
 to the implicit @scheme[this] parameter of the method.  This allows for
diff --git a/collects/typed-scheme/private/type-contract.ss b/collects/typed-scheme/private/type-contract.ss
index 081fbd5fec..f7566cb4f3 100644
--- a/collects/typed-scheme/private/type-contract.ss
+++ b/collects/typed-scheme/private/type-contract.ss
@@ -151,13 +151,15 @@
                        [(names ...) name])
            #'(object/c (names fcn-cnts) ...))]
         ;; init args not currently handled by class/c
-        [(Class: _ _ (list (list name fcn) ...))
+        [(Class: _ (list (list by-name-init by-name-init-ty _) ...) (list (list name fcn) ...))
          (when flat? (exit (fail)))
-         (with-syntax ([(fcn-cnts ...) (for/list ([f fcn]) (t->c/fun f #:method #t))]
-                       [(names ...) name])
+         (with-syntax ([(fcn-cnt ...) (for/list ([f fcn]) (t->c/fun f #:method #t))]
+                       [(name ...) name]
+                       [(by-name-cnt ...) (for/list ([t by-name-init-ty]) (t->c/neg t))]
+                       [(by-name-init ...) by-name-init])
            #'class?
            #;
-           #'(class/c (names fcn-cnts) ...))]
+           #'(class/c (name fcn-cnt) ... (init [by-name-init by-name-cnt] ...)))]
         [(Value: '()) #'null?]
         [(Struct: nm par flds proc poly? pred? cert acc-ids)
          (cond