diff --git a/gcc/cp/class.cc b/gcc/cp/class.cc
index 27a798297372eb1543122157228386b59373c3e0..d37e9d4d5763fa2e2c70f6bbc594decbae068dc0 100644
--- a/gcc/cp/class.cc
+++ b/gcc/cp/class.cc
@@ -8728,6 +8728,8 @@ instantiate_type (tree lhstype, tree rhs, tsubst_flags_t complain)
 
   complain &= ~tf_ptrmem_ok;
 
+  STRIP_ANY_LOCATION_WRAPPER (rhs);
+
   if (lhstype == unknown_type_node)
     {
       if (complain & tf_error)
diff --git a/gcc/testsuite/g++.dg/contracts/contracts-err1.C b/gcc/testsuite/g++.dg/contracts/contracts-err1.C
new file mode 100644
index 0000000000000000000000000000000000000000..8437d94e2ad30f9c3ab803e93eff8b6df7d430d5
--- /dev/null
+++ b/gcc/testsuite/g++.dg/contracts/contracts-err1.C
@@ -0,0 +1,7 @@
+// PR c++/108542
+// { dg-additional-options -fcontracts }
+// { dg-do compile { target c++11 } }
+
+template<typename T>
+void f (T n) {}
+void g() [[pre: f]];			// { dg-error "overloaded" }