diff --git a/collects/scribblings/reference/units.scrbl b/collects/scribblings/reference/units.scrbl
index 96604ac8b1..158ae26a1a 100644
--- a/collects/scribblings/reference/units.scrbl
+++ b/collects/scribblings/reference/units.scrbl
@@ -160,9 +160,9 @@ the corresponding import. Each @scheme[tagged-sig-id] in an
 
  [sig-elem
   id
-  (contracted [id contract] ...)
   (define-syntaxes (id ...) expr)
   (define-values (value-id ...) expr) 
+  (contracted [id contract] ...)
   (open sig-spec) 
   (sig-form-id . datum)])]{
 
@@ -177,15 +177,6 @@ of bindings for import or export:
  importing the signature, and @scheme[id] must be defined by units
  exporting the signature.}
       
- @item{Each @scheme[contracted] form in a signature declaration means
- that a unit exporting the signature must supply a variable definition
- for each @scheme[id] in that form.  If the signature is imported, then
- uses of @scheme[id] inside the unit are protected by the appropriate
- contracts using the unit as the negative blame.  If the signature is
- exported, then the exported values are protected by the appropriate
- contracts which use the unit as the positive blame, but internal uses
- of the exported identifiers are not protected.}
-
  @item{Each @scheme[define-syntaxes] form in a signature declaration
  introduces a macro to that is available for use in any unit that
  imports the signature.  Free variables in the definition's
@@ -198,6 +189,17 @@ of bindings for import or export:
  signature.  Free variables in the definition's @scheme[expr] are
  treated the same as for @scheme[define-syntaxes].}
 
+ @item{Each @scheme[contracted] form in a signature declaration means
+ that a unit exporting the signature must supply a variable definition
+ for each @scheme[id] in that form.  If the signature is imported, then
+ uses of @scheme[id] inside the unit are protected by the appropriate
+ contracts using the unit as the negative blame.  If the signature is
+ exported, then the exported values are protected by the appropriate
+ contracts which use the unit as the positive blame, but internal uses
+ of the exported identifiers are not protected.  Variables in the
+ @scheme[contract] expressions are treated the same as for
+ @scheme[define-syntaxes].}
+
  @item{Each @scheme[(open sig-spec)] adds to the signature everything
  specified by @scheme[sig-spec].}
 
@@ -644,6 +646,9 @@ without adding contracts to the imported and exported signatures.
 The unit value must import a subset of the import signatures and export a
 superset of the export signatures listed in the unit contract.  Any
 identifier which is not listed for a given signature is left alone.
+Variables used in a given @scheme[ctc] expression first refer to other
+variables in the same signature, and then to the context of the 
+@scheme[unit/c] expression.
 
 Here is an example use of @scheme[unit/c]: