diff --git a/typed-racket-lib/typed-racket/typecheck/tc-app/tc-app-contracts.rkt b/typed-racket-lib/typed-racket/typecheck/tc-app/tc-app-contracts.rkt
index 9c86bb1c..7dd5ff2b 100644
--- a/typed-racket-lib/typed-racket/typecheck/tc-app/tc-app-contracts.rkt
+++ b/typed-racket-lib/typed-racket/typecheck/tc-app/tc-app-contracts.rkt
@@ -18,7 +18,7 @@
 (define-tc/app-syntax-class (tc/app-contracts expected)
   (pattern (ctc-id:id blame e ...)
     ;; check that this is an application from the contract system
-    #:when (contract-rename-id-property #'ctc-id)
+    #:when (contract-neg-party-property #'ctc-id)
     (check-contract #'ctc-id #'(e ...) expected)))
 
 ;; Assume that the contracted thing is of the same type the type
diff --git a/typed-racket-test/succeed/gh-issue-38.rkt b/typed-racket-test/succeed/gh-issue-38.rkt
new file mode 100644
index 00000000..d31502d3
--- /dev/null
+++ b/typed-racket-test/succeed/gh-issue-38.rkt
@@ -0,0 +1,24 @@
+#lang racket
+
+(module untyped racket
+  (provide
+   (contract-out
+    [f (-> number? number? number?)]
+    [g (case-> (-> number? number? number?))]))
+  (define (f x y)
+    (expt x y))
+  (define (g x y)
+    (expt x y)))
+
+(module type-env typed-racket/base-env/extra-env-lang
+  (require (submod ".." untyped))
+  (type-environment
+   [f (-> -Number -Number -Number)]
+   [g (-> -Number -Number -Number)]))
+
+(module typed typed/racket
+  (require (submod ".." type-env)
+           typed/rackunit)
+  (check-equal? (f 2 4) (g 2 4)))
+
+(require 'typed)