diff --git a/tests/parser/syntax/test_functions_call.py b/tests/parser/syntax/test_functions_call.py
index 144de06b76..f72b9a83a1 100644
--- a/tests/parser/syntax/test_functions_call.py
+++ b/tests/parser/syntax/test_functions_call.py
@@ -54,6 +54,20 @@ def test_functions_call_fail(bad_code):
 @public
 def foo() -> uint256:
     return convert(2, uint256)
+    """,
+    """
+from vyper.interfaces import ERC20
+
+contract Factory:
+    def getExchange(token_addr: address) -> address: constant
+
+token: ERC20
+factory: Factory
+
+@public
+def setup(token_addr: address):
+    self.token = ERC20(token_addr)
+    assert self.factory.getExchange(self.token) == self
     """
 ]
 
diff --git a/vyper/parser/parser_utils.py b/vyper/parser/parser_utils.py
index ed9b4d88a6..9ca2a999c5 100644
--- a/vyper/parser/parser_utils.py
+++ b/vyper/parser/parser_utils.py
@@ -28,6 +28,9 @@
     has_dynamic_data,
     is_base_type,
 )
+from vyper.types.types import (
+    ContractType,
+)
 from vyper.typing import (
     ClassTypes,
 )
@@ -372,6 +375,8 @@ def base_type_conversion(orig, frm, to, pos, in_function_call=False):
         )
     elif is_base_type(frm, to.typ) and are_units_compatible(frm, to):
         return LLLnode(orig.value, orig.args, typ=to, add_gas_estimate=orig.add_gas_estimate)
+    elif isinstance(frm, ContractType) and to == BaseType('address'):
+        return LLLnode(orig.value, orig.args, typ=to, add_gas_estimate=orig.add_gas_estimate)
     elif is_valid_int128_to_decimal:
         return LLLnode.from_list(
             ['mul', orig, DECIMAL_DIVISOR],
diff --git a/vyper/types/types.py b/vyper/types/types.py
index 21bb5228cb..d0a94840c0 100644
--- a/vyper/types/types.py
+++ b/vyper/types/types.py
@@ -409,7 +409,7 @@ def parse_type(item, location, sigs=None, custom_units=None, custom_structs=None
         if not isinstance(item.func, ast.Name):
             raise InvalidTypeException("Malformed unit type:", item)
         base_type = item.func.id
-        if base_type not in ('int128', 'uint256', 'decimal'):
+        if base_type not in ('int128', 'uint256', 'decimal', 'address'):
             raise InvalidTypeException("You must use int128, uint256, decimal, address, contract, \
                 for variable declarations and indexed for logging topics ", item)
         if len(item.args) == 0: