From b73054575264bde9a8af14078bb06d835dcd5da4 Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Thu, 14 Oct 2021 14:58:16 +0100
Subject: [PATCH 01/11] Test authorization within Exercise choice.

CHANGELOG_BEGIN
CHANGELOG_END
---
 daml-lf/engine/BUILD.bazel                    |   1 +
 .../daml/lf/engine/AuthPropagationSpec.scala  | 322 ++++++++++++++++++
 daml-lf/tests/AuthTests.daml                  |  23 ++
 daml-lf/tests/BUILD.bazel                     |   1 +
 4 files changed, 347 insertions(+)
 create mode 100644 daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
 create mode 100644 daml-lf/tests/AuthTests.daml

diff --git a/daml-lf/engine/BUILD.bazel b/daml-lf/engine/BUILD.bazel
index fa551c5b97e3..9d70484de996 100644
--- a/daml-lf/engine/BUILD.bazel
+++ b/daml-lf/engine/BUILD.bazel
@@ -47,6 +47,7 @@ da_scala_test_suite(
         ],
     ),
     data = [
+        "//daml-lf/tests:AuthTests.dar",
         "//daml-lf/tests:BasicTests.dar",
         "//daml-lf/tests:Exceptions.dar",
         "//daml-lf/tests:MultiKeys.dar",
diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
new file mode 100644
index 000000000000..303716c0a34a
--- /dev/null
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -0,0 +1,322 @@
+// Copyright (c) 2021 Digital Asset (Switzerland) GmbH and/or its affiliates. All rights reserved.
+// SPDX-License-Identifier: Apache-2.0
+
+package com.daml.lf
+package engine
+
+import com.daml.bazeltools.BazelRunfiles
+import com.daml.lf.archive.UniversalArchiveDecoder
+import com.daml.lf.command.{ApiCommand, Commands, CreateCommand, ExerciseCommand}
+import com.daml.lf.data.Ref.{
+  Name,
+  Party,
+  ParticipantId,
+  PackageId,
+  Identifier,
+  QualifiedName,
+  ChoiceName,
+}
+import com.daml.lf.data.Time
+import com.daml.lf.data.{ImmArray, Bytes}
+import com.daml.lf.language.Ast.Package
+import com.daml.lf.ledger.FailedAuthorization.{
+  CreateMissingAuthorization,
+  ExerciseMissingAuthorization,
+}
+import com.daml.lf.transaction.GlobalKeyWithMaintainers
+import com.daml.lf.transaction.Transaction.Metadata
+import com.daml.lf.transaction.{SubmittedTransaction, TransactionVersion}
+import com.daml.lf.value.Value
+import com.daml.lf.value.Value.{ContractId, ContractInst, VersionedValue, ValueRecord, ValueParty}
+
+import java.io.File
+
+import org.scalatest.Inside
+import org.scalatest.freespec.AnyFreeSpec
+import org.scalatest.matchers.should.Matchers
+
+class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with BazelRunfiles {
+
+  def loadPackage(resource: String): (PackageId, Package, Map[PackageId, Package]) = {
+    val packages = UniversalArchiveDecoder.assertReadFile(new File(rlocation(resource)))
+    val (mainPkgId, mainPkg) = packages.main
+    (mainPkgId, mainPkg, packages.all.toMap)
+  }
+
+  val (packageId, _, allPackages) = loadPackage(
+    "daml-lf/tests/AuthTests.dar"
+  )
+
+  def toContractId(s: String): ContractId = {
+    def dummySuffix: Bytes = Bytes.assertFromString("00")
+    ContractId.V1.assertBuild(crypto.Hash.hashPrivateKey(s), dummySuffix)
+  }
+
+  // field names
+  def party: Name = Name.assertFromString("party")
+  def party1: Name = Name.assertFromString("party1")
+  def party2: Name = Name.assertFromString("party2")
+
+  def t1: Identifier =
+    Identifier(packageId, QualifiedName.assertFromString("AuthTests:T1"))
+
+  def t2: Identifier =
+    Identifier(packageId, QualifiedName.assertFromString("AuthTests:T2"))
+
+  def choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
+  def choice1type: Identifier =
+    Identifier(packageId, QualifiedName.assertFromString("AuthTests:Choice1"))
+
+  def alice: Party = Party.assertFromString("Alice")
+  def bob: Party = Party.assertFromString("Bob")
+
+  def t1InstanceFor(x: Party): ContractInst[Value.VersionedValue] = {
+    ContractInst(
+      t1,
+      VersionedValue(
+        TransactionVersion.VDev,
+        ValueRecord(
+          Some(t1),
+          ImmArray((Some[Name](party), ValueParty(x))),
+        ),
+      ),
+      "",
+    )
+  }
+
+  val t1a = t1InstanceFor(alice)
+  val t1b = t1InstanceFor(bob)
+
+  val defaultContracts: Map[ContractId, ContractInst[Value.VersionedValue]] =
+    Map(
+      toContractId("t1a") -> t1a,
+      toContractId("t1b") -> t1b,
+    )
+
+  def readAs: Set[Party] = Set.empty
+  def let: Time.Timestamp = Time.Timestamp.now()
+  def participant: ParticipantId = ParticipantId.assertFromString("participant")
+  def submissionSeed: crypto.Hash = crypto.Hash.hashPrivateKey("submissionSeed")
+
+  def lookupPackage: PackageId => Option[Package] =
+    pkgId => allPackages.get(pkgId)
+
+  def lookupContract: ContractId => Option[ContractInst[VersionedValue]] =
+    cid => defaultContracts.get(cid)
+
+  def lookupKey: GlobalKeyWithMaintainers => Option[ContractId] =
+    _ => None
+
+  def testEngine: Engine =
+    Engine.DevEngine()
+
+  def go(
+      submitters: Set[Party],
+      command: ApiCommand,
+  ): Either[engine.Error, (SubmittedTransaction, Metadata)] = {
+
+    val interpretResult =
+      testEngine
+        .submit(
+          submitters,
+          readAs,
+          Commands(ImmArray(command), let, "commands-tag"),
+          participant,
+          submissionSeed,
+        )
+        .consume(lookupContract, lookupPackage, lookupKey)
+
+    interpretResult
+  }
+
+  "Create(T1)" - {
+    def command: ApiCommand =
+      CreateCommand(
+        t1,
+        ValueRecord(
+          Some(t1),
+          ImmArray(
+            (Some[Name](party), ValueParty(alice))
+          ),
+        ),
+      )
+    "ok" in {
+      val interpretResult = go(
+        submitters = Set(alice),
+        command = command,
+      )
+      inside(interpretResult) { case Right(_) =>
+      }
+    }
+    "fail" in {
+      val interpretResult = go(
+        submitters = Set.empty,
+        command = command,
+      )
+      inside(interpretResult) {
+        case Left(
+              engine.Error.Interpretation(
+                engine.Error.Interpretation.DamlException(
+                  interpretation.Error
+                    .FailedAuthorization(_, CreateMissingAuthorization(_, _, _, _))
+                ),
+                _,
+              )
+            ) =>
+      }
+    }
+  }
+
+  "Create(T2)" - {
+    def command: ApiCommand =
+      CreateCommand(
+        t2,
+        ValueRecord(
+          Some(t2),
+          ImmArray(
+            (Some[Name](party1), ValueParty(alice)),
+            (Some[Name](party2), ValueParty(bob)),
+          ),
+        ),
+      )
+
+    "ok" in {
+      val interpretResult = go(
+        submitters = Set(alice, bob),
+        command = command,
+      )
+      inside(interpretResult) { case Right(_) =>
+      }
+    }
+    "fail" in {
+      val interpretResult = go(
+        submitters = Set(alice),
+        command = command,
+      )
+      inside(interpretResult) {
+        case Left(
+              engine.Error.Interpretation(
+                engine.Error.Interpretation.DamlException(
+                  interpretation.Error
+                    .FailedAuthorization(_, CreateMissingAuthorization(_, _, _, _))
+                ),
+                _,
+              )
+            ) =>
+      }
+    }
+  }
+
+  // Test authorization of an exercise choice collects authority from both
+  // the contract signatory and the choice controller
+
+  "Exercise(Choice1 of T1 to create T2)" - {
+
+    "ok (Alice signed contract; Bob exercised Choice)" in {
+      def command: ApiCommand =
+        ExerciseCommand(
+          t1,
+          toContractId("t1a"),
+          choice1name,
+          ValueRecord(
+            Some(choice1type),
+            ImmArray(
+              (Some[Name](party1), ValueParty(alice)),
+              (Some[Name](party2), ValueParty(bob)),
+            ),
+          ),
+        )
+      val interpretResult = go(
+        submitters = Set(bob),
+        command = command,
+      )
+      inside(interpretResult) { case Right(_) =>
+      }
+    }
+
+    "fail: ExerciseMissingAuthorization" in {
+      def command: ApiCommand =
+        ExerciseCommand(
+          t1,
+          toContractId("t1a"),
+          choice1name,
+          ValueRecord(
+            Some(choice1type),
+            ImmArray(
+              (Some[Name](party1), ValueParty(alice)),
+              (Some[Name](party2), ValueParty(bob)),
+            ),
+          ),
+        )
+      val interpretResult = go(
+        submitters = Set(alice),
+        command = command,
+      )
+      inside(interpretResult) {
+        case Left(
+              engine.Error.Interpretation(
+                engine.Error.Interpretation.DamlException(
+                  interpretation.Error
+                    .FailedAuthorization(_, ExerciseMissingAuthorization(_, _, _, _, _))
+                ),
+                _,
+              )
+            ) =>
+      }
+    }
+
+    "fail: CreateMissingAuthorization" in {
+      def command: ApiCommand =
+        ExerciseCommand(
+          t1,
+          toContractId("t1a"),
+          choice1name,
+          ValueRecord(
+            Some(choice1type),
+            ImmArray(
+              (Some[Name](party1), ValueParty(bob)),
+              (Some[Name](party2), ValueParty(alice)),
+            ),
+          ),
+        )
+      val interpretResult = go(
+        submitters = Set(alice),
+        command = command,
+      )
+      inside(interpretResult) {
+        case Left(
+              engine.Error.Interpretation(
+                engine.Error.Interpretation.DamlException(
+                  interpretation.Error
+                    .FailedAuthorization(_, CreateMissingAuthorization(_, _, _, _))
+                ),
+                _,
+              )
+            ) =>
+      }
+    }
+
+    "ok (Bob signed contract; Alice exercised Choice)" in {
+      def command: ApiCommand =
+        ExerciseCommand(
+          t1,
+          toContractId("t1b"),
+          choice1name,
+          ValueRecord(
+            Some(choice1type),
+            ImmArray(
+              (Some[Name](party1), ValueParty(bob)),
+              (Some[Name](party2), ValueParty(alice)),
+            ),
+          ),
+        )
+      val interpretResult = go(
+        submitters = Set(alice),
+        command = command,
+      )
+      inside(interpretResult) { case Right(_) =>
+      }
+    }
+
+  }
+}
diff --git a/daml-lf/tests/AuthTests.daml b/daml-lf/tests/AuthTests.daml
new file mode 100644
index 000000000000..4633897f2c97
--- /dev/null
+++ b/daml-lf/tests/AuthTests.daml
@@ -0,0 +1,23 @@
+-- Copyright (c) 2021 Digital Asset (Switzerland) GmbH and/or its affiliates. All rights reserved.
+-- SPDX-License-Identifier: Apache-2.0
+
+module AuthTests where
+
+template T1 with
+    party : Party
+  where
+    signatory party
+
+    nonconsuming choice Choice1 : ContractId T2
+      with
+        party1 : Party
+        party2 : Party
+      controller party2
+      do
+        create T2 with party1; party2
+
+template T2 with
+    party1 : Party
+    party2 : Party
+  where
+    signatory [party1,party2]
diff --git a/daml-lf/tests/BUILD.bazel b/daml-lf/tests/BUILD.bazel
index 1fca229ed0eb..0377e1a551d7 100644
--- a/daml-lf/tests/BUILD.bazel
+++ b/daml-lf/tests/BUILD.bazel
@@ -19,6 +19,7 @@ TEST_FILES = \
         "LargeTransaction",
         "ConjunctionChoices",
         "ContractKeys",
+        "AuthTests",
     ]
 
 [

From cdce1a990ed83ae25dcbfd344d3aa0b2d471bb66 Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Thu, 14 Oct 2021 15:32:21 +0100
Subject: [PATCH 02/11] fix build following rebase

---
 .../daml/lf/engine/AuthPropagationSpec.scala  | 21 ++++++++-----------
 1 file changed, 9 insertions(+), 12 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index 303716c0a34a..a0b6fe317d3c 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -26,8 +26,7 @@ import com.daml.lf.ledger.FailedAuthorization.{
 import com.daml.lf.transaction.GlobalKeyWithMaintainers
 import com.daml.lf.transaction.Transaction.Metadata
 import com.daml.lf.transaction.{SubmittedTransaction, TransactionVersion}
-import com.daml.lf.value.Value
-import com.daml.lf.value.Value.{ContractId, ContractInst, VersionedValue, ValueRecord, ValueParty}
+import com.daml.lf.value.Value.{ContractId, ValueRecord, ValueParty, VersionedContractInstance}
 
 import java.io.File
 
@@ -70,15 +69,13 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   def alice: Party = Party.assertFromString("Alice")
   def bob: Party = Party.assertFromString("Bob")
 
-  def t1InstanceFor(x: Party): ContractInst[Value.VersionedValue] = {
-    ContractInst(
+  def t1InstanceFor(x: Party): VersionedContractInstance = {
+    VersionedContractInstance(
+      TransactionVersion.VDev,
       t1,
-      VersionedValue(
-        TransactionVersion.VDev,
-        ValueRecord(
-          Some(t1),
-          ImmArray((Some[Name](party), ValueParty(x))),
-        ),
+      ValueRecord(
+        Some(t1),
+        ImmArray((Some[Name](party), ValueParty(x))),
       ),
       "",
     )
@@ -87,7 +84,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   val t1a = t1InstanceFor(alice)
   val t1b = t1InstanceFor(bob)
 
-  val defaultContracts: Map[ContractId, ContractInst[Value.VersionedValue]] =
+  val defaultContracts: Map[ContractId, VersionedContractInstance] =
     Map(
       toContractId("t1a") -> t1a,
       toContractId("t1b") -> t1b,
@@ -101,7 +98,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   def lookupPackage: PackageId => Option[Package] =
     pkgId => allPackages.get(pkgId)
 
-  def lookupContract: ContractId => Option[ContractInst[VersionedValue]] =
+  def lookupContract: ContractId => Option[VersionedContractInstance] =
     cid => defaultContracts.get(cid)
 
   def lookupKey: GlobalKeyWithMaintainers => Option[ContractId] =

From 17dca9e02a74b94e85712e2d3fb69166820a801a Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Fri, 15 Oct 2021 11:00:46 +0100
Subject: [PATCH 03/11] 4x shouldBe a Right

---
 .../daml/lf/engine/AuthPropagationSpec.scala         | 12 ++++--------
 1 file changed, 4 insertions(+), 8 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index a0b6fe317d3c..09584436c5c6 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -142,8 +142,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         submitters = Set(alice),
         command = command,
       )
-      inside(interpretResult) { case Right(_) =>
-      }
+      interpretResult shouldBe a[Right[_, _]]
     }
     "fail" in {
       val interpretResult = go(
@@ -182,8 +181,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         submitters = Set(alice, bob),
         command = command,
       )
-      inside(interpretResult) { case Right(_) =>
-      }
+      interpretResult shouldBe a[Right[_, _]]
     }
     "fail" in {
       val interpretResult = go(
@@ -227,8 +225,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         submitters = Set(bob),
         command = command,
       )
-      inside(interpretResult) { case Right(_) =>
-      }
+      interpretResult shouldBe a[Right[_, _]]
     }
 
     "fail: ExerciseMissingAuthorization" in {
@@ -311,8 +308,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         submitters = Set(alice),
         command = command,
       )
-      inside(interpretResult) { case Right(_) =>
-      }
+      interpretResult shouldBe a[Right[_, _]]
     }
 
   }

From de63a6a9bffb11d27cd6b1d7168392ba64686576 Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Fri, 15 Oct 2021 16:50:03 +0100
Subject: [PATCH 04/11] test for exercise within exercise

---
 .../daml/lf/engine/AuthPropagationSpec.scala  | 119 +++++++++++++++++-
 daml-lf/tests/AuthTests.daml                  |  38 ++++++
 2 files changed, 155 insertions(+), 2 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index 09584436c5c6..8104120e08fd 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -7,6 +7,7 @@ package engine
 import com.daml.bazeltools.BazelRunfiles
 import com.daml.lf.archive.UniversalArchiveDecoder
 import com.daml.lf.command.{ApiCommand, Commands, CreateCommand, ExerciseCommand}
+import com.daml.lf.data.FrontStack
 import com.daml.lf.data.Ref.{
   Name,
   Party,
@@ -26,7 +27,14 @@ import com.daml.lf.ledger.FailedAuthorization.{
 import com.daml.lf.transaction.GlobalKeyWithMaintainers
 import com.daml.lf.transaction.Transaction.Metadata
 import com.daml.lf.transaction.{SubmittedTransaction, TransactionVersion}
-import com.daml.lf.value.Value.{ContractId, ValueRecord, ValueParty, VersionedContractInstance}
+import com.daml.lf.value.Value.{
+  ContractId,
+  ValueRecord,
+  ValueParty,
+  VersionedContractInstance,
+  ValueContractId,
+  ValueList,
+}
 
 import java.io.File
 
@@ -51,10 +59,14 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     ContractId.V1.assertBuild(crypto.Hash.hashPrivateKey(s), dummySuffix)
   }
 
-  // field names
+  // field names //NICK: prefix? -- or perhaps inline bindings; with implicit?!
+  def f_cid: Name = Name.assertFromString("cid")
+  def controllerA: Name = Name.assertFromString("controllerA")
+  def controllersB: Name = Name.assertFromString("controllersB")
   def party: Name = Name.assertFromString("party")
   def party1: Name = Name.assertFromString("party1")
   def party2: Name = Name.assertFromString("party2")
+  def party3: Name = Name.assertFromString("party3")
 
   def t1: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:T1"))
@@ -62,12 +74,21 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   def t2: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:T2"))
 
+  // NICK: simplfy examples so just have one set of templates (not T and X)
+  def x1: Identifier =
+    Identifier(packageId, QualifiedName.assertFromString("AuthTests:X1"))
+
   def choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
   def choice1type: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:Choice1"))
 
+  def choiceAname: ChoiceName = ChoiceName.assertFromString("ChoiceA")
+  def choiceAtype: Identifier =
+    Identifier(packageId, QualifiedName.assertFromString("AuthTests:ChoiceA"))
+
   def alice: Party = Party.assertFromString("Alice")
   def bob: Party = Party.assertFromString("Bob")
+  def charlie: Party = Party.assertFromString("Charlie")
 
   def t1InstanceFor(x: Party): VersionedContractInstance = {
     VersionedContractInstance(
@@ -81,13 +102,30 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     )
   }
 
+  def x1InstanceFor(p: Party): VersionedContractInstance = {
+    VersionedContractInstance(
+      TransactionVersion.VDev,
+      x1,
+      ValueRecord(
+        Some(x1),
+        ImmArray((Some[Name](party), ValueParty(p))),
+      ),
+      "",
+    )
+  }
+
   val t1a = t1InstanceFor(alice)
   val t1b = t1InstanceFor(bob)
 
+  val x1b = x1InstanceFor(bob)
+  val x1c = x1InstanceFor(charlie)
+
   val defaultContracts: Map[ContractId, VersionedContractInstance] =
     Map(
       toContractId("t1a") -> t1a,
       toContractId("t1b") -> t1b,
+      toContractId("x1b") -> x1b,
+      toContractId("x1c") -> x1c,
     )
 
   def readAs: Set[Party] = Set.empty
@@ -310,6 +348,83 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
       )
       interpretResult shouldBe a[Right[_, _]]
     }
+  }
+
+  "Exercise (within exercise)" - {
+
+    "fail (no implicit authority from outer exercise's contract's signatories)" in {
+      def command: ApiCommand =
+        ExerciseCommand(
+          x1,
+          toContractId("x1b"),
+          choiceAname,
+          ValueRecord(
+            Some(choiceAtype),
+            ImmArray(
+              (Some(f_cid), ValueContractId(toContractId("x1c"))),
+              (Some(controllerA), ValueParty(alice)),
+              (
+                Some(controllersB),
+                ValueList(
+                  FrontStack(
+                    ValueParty(alice)
+                  )
+                ),
+              ),
+              (Some(party1), ValueParty(alice)),
+              (Some(party2), ValueParty(bob)),
+              (Some(party3), ValueParty(charlie)),
+            ),
+          ),
+        )
+      val interpretResult = go(
+        submitters = Set(alice),
+        command = command,
+      )
+      inside(interpretResult) {
+        case Left(
+              engine.Error.Interpretation(
+                engine.Error.Interpretation.DamlException(
+                  interpretation.Error
+                    .FailedAuthorization(_, CreateMissingAuthorization(_, _, _, _))
+                ),
+                _,
+              )
+            ) =>
+      }
+    }
 
+    "ok" in {
+      def command: ApiCommand =
+        ExerciseCommand(
+          x1,
+          toContractId("x1b"),
+          choiceAname,
+          ValueRecord(
+            Some(choiceAtype),
+            ImmArray(
+              (Some(f_cid), ValueContractId(toContractId("x1c"))),
+              (Some(controllerA), ValueParty(alice)),
+              (
+                Some(controllersB),
+                ValueList(
+                  FrontStack(
+                    ValueParty(alice),
+                    ValueParty(bob), // bob must be an explicit controller on inner exercise
+                  )
+                ),
+              ),
+              (Some(party1), ValueParty(alice)),
+              (Some(party2), ValueParty(bob)),
+              (Some(party3), ValueParty(charlie)),
+            ),
+          ),
+        )
+      val interpretResult = go(
+        submitters = Set(alice),
+        command = command,
+      )
+      interpretResult shouldBe a[Right[_, _]]
+    }
   }
 }
diff --git a/daml-lf/tests/AuthTests.daml b/daml-lf/tests/AuthTests.daml
index 4633897f2c97..07b85e4529ed 100644
--- a/daml-lf/tests/AuthTests.daml
+++ b/daml-lf/tests/AuthTests.daml
@@ -21,3 +21,41 @@ template T2 with
     party2 : Party
   where
     signatory [party1,party2]
+
+
+----------------------------------------------------------------------
+-- templates for exercise-within-exercise testcase
+
+template X1 with
+    party : Party
+  where
+    signatory party
+
+    nonconsuming choice ChoiceA : ContractId X2
+      with
+        cid : ContractId X1
+        controllerA : Party
+        controllersB : [Party]
+        party1 : Party
+        party2 : Party
+        party3 : Party
+      controller controllerA
+      do
+        exercise cid ChoiceB with controllersB; party1; party2; party3
+
+    nonconsuming choice ChoiceB : ContractId X2
+      with
+        controllersB : [Party]
+        party1 : Party
+        party2 : Party
+        party3 : Party
+      controller controllersB
+      do
+        create X2 with party1; party2; party3
+
+template X2 with
+    party1 : Party
+    party2 : Party
+    party3 : Party
+  where
+    signatory [party1,party2,party3]

From 207725b40794fbd28e881e9c63a7c0a794620634 Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Mon, 18 Oct 2021 10:46:41 +0100
Subject: [PATCH 05/11] implicit Name.assertFromString

---
 .../daml/lf/engine/AuthPropagationSpec.scala  | 67 +++++++++----------
 1 file changed, 31 insertions(+), 36 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index 8104120e08fd..3403d5732db1 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -42,8 +42,12 @@ import org.scalatest.Inside
 import org.scalatest.freespec.AnyFreeSpec
 import org.scalatest.matchers.should.Matchers
 
+import scala.language.implicitConversions
+
 class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with BazelRunfiles {
 
+  implicit def toName(s: String): Name = Name.assertFromString(s)
+
   def loadPackage(resource: String): (PackageId, Package, Map[PackageId, Package]) = {
     val packages = UniversalArchiveDecoder.assertReadFile(new File(rlocation(resource)))
     val (mainPkgId, mainPkg) = packages.main
@@ -59,15 +63,6 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     ContractId.V1.assertBuild(crypto.Hash.hashPrivateKey(s), dummySuffix)
   }
 
-  // field names //NICK: prefix? -- or perhaps inline bindings; with implicit?!
-  def f_cid: Name = Name.assertFromString("cid")
-  def controllerA: Name = Name.assertFromString("controllerA")
-  def controllersB: Name = Name.assertFromString("controllersB")
-  def party: Name = Name.assertFromString("party")
-  def party1: Name = Name.assertFromString("party1")
-  def party2: Name = Name.assertFromString("party2")
-  def party3: Name = Name.assertFromString("party3")
-
   def t1: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:T1"))
 
@@ -90,25 +85,25 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   def bob: Party = Party.assertFromString("Bob")
   def charlie: Party = Party.assertFromString("Charlie")
 
-  def t1InstanceFor(x: Party): VersionedContractInstance = {
+  def t1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
       TransactionVersion.VDev,
       t1,
       ValueRecord(
         Some(t1),
-        ImmArray((Some[Name](party), ValueParty(x))),
+        ImmArray((Some[Name]("party"), ValueParty(party))),
       ),
       "",
     )
   }
 
-  def x1InstanceFor(p: Party): VersionedContractInstance = {
+  def x1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
       TransactionVersion.VDev,
       x1,
       ValueRecord(
         Some(x1),
-        ImmArray((Some[Name](party), ValueParty(p))),
+        ImmArray((Some[Name]("party"), ValueParty(party))),
       ),
       "",
     )
@@ -171,7 +166,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ValueRecord(
           Some(t1),
           ImmArray(
-            (Some[Name](party), ValueParty(alice))
+            (Some[Name]("party"), ValueParty(alice))
           ),
         ),
       )
@@ -208,8 +203,8 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ValueRecord(
           Some(t2),
           ImmArray(
-            (Some[Name](party1), ValueParty(alice)),
-            (Some[Name](party2), ValueParty(bob)),
+            (Some[Name]("party1"), ValueParty(alice)),
+            (Some[Name]("party2"), ValueParty(bob)),
           ),
         ),
       )
@@ -254,8 +249,8 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
           ValueRecord(
             Some(choice1type),
             ImmArray(
-              (Some[Name](party1), ValueParty(alice)),
-              (Some[Name](party2), ValueParty(bob)),
+              (Some[Name]("party1"), ValueParty(alice)),
+              (Some[Name]("party2"), ValueParty(bob)),
             ),
           ),
         )
@@ -275,8 +270,8 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
           ValueRecord(
             Some(choice1type),
             ImmArray(
-              (Some[Name](party1), ValueParty(alice)),
-              (Some[Name](party2), ValueParty(bob)),
+              (Some[Name]("party1"), ValueParty(alice)),
+              (Some[Name]("party2"), ValueParty(bob)),
             ),
           ),
         )
@@ -306,8 +301,8 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
           ValueRecord(
             Some(choice1type),
             ImmArray(
-              (Some[Name](party1), ValueParty(bob)),
-              (Some[Name](party2), ValueParty(alice)),
+              (Some[Name]("party1"), ValueParty(bob)),
+              (Some[Name]("party2"), ValueParty(alice)),
             ),
           ),
         )
@@ -337,8 +332,8 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
           ValueRecord(
             Some(choice1type),
             ImmArray(
-              (Some[Name](party1), ValueParty(bob)),
-              (Some[Name](party2), ValueParty(alice)),
+              (Some[Name]("party1"), ValueParty(bob)),
+              (Some[Name]("party2"), ValueParty(alice)),
             ),
           ),
         )
@@ -361,19 +356,19 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
           ValueRecord(
             Some(choiceAtype),
             ImmArray(
-              (Some(f_cid), ValueContractId(toContractId("x1c"))),
-              (Some(controllerA), ValueParty(alice)),
+              (Some("cid"), ValueContractId(toContractId("x1c"))),
+              (Some("controllerA"), ValueParty(alice)),
               (
-                Some(controllersB),
+                Some("controllersB"),
                 ValueList(
                   FrontStack(
                     ValueParty(alice)
                   )
                 ),
               ),
-              (Some(party1), ValueParty(alice)),
-              (Some(party2), ValueParty(bob)),
-              (Some(party3), ValueParty(charlie)),
+              (Some("party1"), ValueParty(alice)),
+              (Some("party2"), ValueParty(bob)),
+              (Some("party3"), ValueParty(charlie)),
             ),
           ),
         )
@@ -403,10 +398,10 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
           ValueRecord(
             Some(choiceAtype),
             ImmArray(
-              (Some(f_cid), ValueContractId(toContractId("x1c"))),
-              (Some(controllerA), ValueParty(alice)),
+              (Some("cid"), ValueContractId(toContractId("x1c"))),
+              (Some("controllerA"), ValueParty(alice)),
               (
-                Some(controllersB),
+                Some("controllersB"),
                 ValueList(
                   FrontStack(
                     ValueParty(alice),
@@ -414,9 +409,9 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
                   )
                 ),
               ),
-              (Some(party1), ValueParty(alice)),
-              (Some(party2), ValueParty(bob)),
-              (Some(party3), ValueParty(charlie)),
+              (Some("party1"), ValueParty(alice)),
+              (Some("party2"), ValueParty(bob)),
+              (Some("party3"), ValueParty(charlie)),
             ),
           ),
         )

From 413e9e53f06a9e23ab8409968e0f0d15f1f6455e Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Mon, 18 Oct 2021 10:54:56 +0100
Subject: [PATCH 06/11] def --> val. massive speedup!

---
 .../daml/lf/engine/AuthPropagationSpec.scala  | 54 +++++++++----------
 1 file changed, 27 insertions(+), 27 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index 3403d5732db1..e6b7b540095b 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -59,31 +59,31 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   )
 
   def toContractId(s: String): ContractId = {
-    def dummySuffix: Bytes = Bytes.assertFromString("00")
+    val dummySuffix: Bytes = Bytes.assertFromString("00")
     ContractId.V1.assertBuild(crypto.Hash.hashPrivateKey(s), dummySuffix)
   }
 
-  def t1: Identifier =
+  val t1: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:T1"))
 
-  def t2: Identifier =
+  val t2: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:T2"))
 
   // NICK: simplfy examples so just have one set of templates (not T and X)
-  def x1: Identifier =
+  val x1: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:X1"))
 
-  def choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
-  def choice1type: Identifier =
+  val choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
+  val choice1type: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:Choice1"))
 
-  def choiceAname: ChoiceName = ChoiceName.assertFromString("ChoiceA")
-  def choiceAtype: Identifier =
+  val choiceAname: ChoiceName = ChoiceName.assertFromString("ChoiceA")
+  val choiceAtype: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:ChoiceA"))
 
-  def alice: Party = Party.assertFromString("Alice")
-  def bob: Party = Party.assertFromString("Bob")
-  def charlie: Party = Party.assertFromString("Charlie")
+  val alice: Party = Party.assertFromString("Alice")
+  val bob: Party = Party.assertFromString("Bob")
+  val charlie: Party = Party.assertFromString("Charlie")
 
   def t1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
@@ -123,21 +123,21 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
       toContractId("x1c") -> x1c,
     )
 
-  def readAs: Set[Party] = Set.empty
-  def let: Time.Timestamp = Time.Timestamp.now()
-  def participant: ParticipantId = ParticipantId.assertFromString("participant")
-  def submissionSeed: crypto.Hash = crypto.Hash.hashPrivateKey("submissionSeed")
+  val readAs: Set[Party] = Set.empty
+  val let: Time.Timestamp = Time.Timestamp.now()
+  val participant: ParticipantId = ParticipantId.assertFromString("participant")
+  val submissionSeed: crypto.Hash = crypto.Hash.hashPrivateKey("submissionSeed")
 
-  def lookupPackage: PackageId => Option[Package] =
+  val lookupPackage: PackageId => Option[Package] =
     pkgId => allPackages.get(pkgId)
 
-  def lookupContract: ContractId => Option[VersionedContractInstance] =
+  val lookupContract: ContractId => Option[VersionedContractInstance] =
     cid => defaultContracts.get(cid)
 
-  def lookupKey: GlobalKeyWithMaintainers => Option[ContractId] =
+  val lookupKey: GlobalKeyWithMaintainers => Option[ContractId] =
     _ => None
 
-  def testEngine: Engine =
+  val testEngine: Engine =
     Engine.DevEngine()
 
   def go(
@@ -160,7 +160,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   }
 
   "Create(T1)" - {
-    def command: ApiCommand =
+    val command: ApiCommand =
       CreateCommand(
         t1,
         ValueRecord(
@@ -197,7 +197,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   }
 
   "Create(T2)" - {
-    def command: ApiCommand =
+    val command: ApiCommand =
       CreateCommand(
         t2,
         ValueRecord(
@@ -241,7 +241,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   "Exercise(Choice1 of T1 to create T2)" - {
 
     "ok (Alice signed contract; Bob exercised Choice)" in {
-      def command: ApiCommand =
+      val command: ApiCommand =
         ExerciseCommand(
           t1,
           toContractId("t1a"),
@@ -262,7 +262,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     }
 
     "fail: ExerciseMissingAuthorization" in {
-      def command: ApiCommand =
+      val command: ApiCommand =
         ExerciseCommand(
           t1,
           toContractId("t1a"),
@@ -293,7 +293,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     }
 
     "fail: CreateMissingAuthorization" in {
-      def command: ApiCommand =
+      val command: ApiCommand =
         ExerciseCommand(
           t1,
           toContractId("t1a"),
@@ -324,7 +324,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     }
 
     "ok (Bob signed contract; Alice exercised Choice)" in {
-      def command: ApiCommand =
+      val command: ApiCommand =
         ExerciseCommand(
           t1,
           toContractId("t1b"),
@@ -348,7 +348,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   "Exercise (within exercise)" - {
 
     "fail (no implicit authority from outer exercise's contract's signatories)" in {
-      def command: ApiCommand =
+      val command: ApiCommand =
         ExerciseCommand(
           x1,
           toContractId("x1b"),
@@ -390,7 +390,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     }
 
     "ok" in {
-      def command: ApiCommand =
+      val command: ApiCommand =
         ExerciseCommand(
           x1,
           toContractId("x1b"),

From 4acb8d355b5e379b06ab8b99811735bb7c93cea2 Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Mon, 18 Oct 2021 11:01:21 +0100
Subject: [PATCH 07/11] be more private

---
 .../daml/lf/engine/AuthPropagationSpec.scala  | 60 +++++++++----------
 1 file changed, 30 insertions(+), 30 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index e6b7b540095b..30d9c0fdf7c4 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -46,46 +46,46 @@ import scala.language.implicitConversions
 
 class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with BazelRunfiles {
 
-  implicit def toName(s: String): Name = Name.assertFromString(s)
+  implicit private def toName(s: String): Name = Name.assertFromString(s)
 
-  def loadPackage(resource: String): (PackageId, Package, Map[PackageId, Package]) = {
+  private def loadPackage(resource: String): (PackageId, Package, Map[PackageId, Package]) = {
     val packages = UniversalArchiveDecoder.assertReadFile(new File(rlocation(resource)))
     val (mainPkgId, mainPkg) = packages.main
     (mainPkgId, mainPkg, packages.all.toMap)
   }
 
-  val (packageId, _, allPackages) = loadPackage(
+  private val (packageId, _, allPackages) = loadPackage(
     "daml-lf/tests/AuthTests.dar"
   )
 
-  def toContractId(s: String): ContractId = {
+  private def toContractId(s: String): ContractId = {
     val dummySuffix: Bytes = Bytes.assertFromString("00")
     ContractId.V1.assertBuild(crypto.Hash.hashPrivateKey(s), dummySuffix)
   }
 
-  val t1: Identifier =
+  private val t1: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:T1"))
 
-  val t2: Identifier =
+  private val t2: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:T2"))
 
   // NICK: simplfy examples so just have one set of templates (not T and X)
-  val x1: Identifier =
+  private val x1: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:X1"))
 
-  val choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
-  val choice1type: Identifier =
+  private val choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
+  private val choice1type: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:Choice1"))
 
-  val choiceAname: ChoiceName = ChoiceName.assertFromString("ChoiceA")
-  val choiceAtype: Identifier =
+  private val choiceAname: ChoiceName = ChoiceName.assertFromString("ChoiceA")
+  private val choiceAtype: Identifier =
     Identifier(packageId, QualifiedName.assertFromString("AuthTests:ChoiceA"))
 
-  val alice: Party = Party.assertFromString("Alice")
-  val bob: Party = Party.assertFromString("Bob")
-  val charlie: Party = Party.assertFromString("Charlie")
+  private val alice: Party = Party.assertFromString("Alice")
+  private val bob: Party = Party.assertFromString("Bob")
+  private val charlie: Party = Party.assertFromString("Charlie")
 
-  def t1InstanceFor(party: Party): VersionedContractInstance = {
+  private def t1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
       TransactionVersion.VDev,
       t1,
@@ -97,7 +97,7 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     )
   }
 
-  def x1InstanceFor(party: Party): VersionedContractInstance = {
+  private def x1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
       TransactionVersion.VDev,
       x1,
@@ -109,13 +109,13 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     )
   }
 
-  val t1a = t1InstanceFor(alice)
-  val t1b = t1InstanceFor(bob)
+  private val t1a = t1InstanceFor(alice)
+  private val t1b = t1InstanceFor(bob)
 
-  val x1b = x1InstanceFor(bob)
-  val x1c = x1InstanceFor(charlie)
+  private val x1b = x1InstanceFor(bob)
+  private val x1c = x1InstanceFor(charlie)
 
-  val defaultContracts: Map[ContractId, VersionedContractInstance] =
+  private val defaultContracts: Map[ContractId, VersionedContractInstance] =
     Map(
       toContractId("t1a") -> t1a,
       toContractId("t1b") -> t1b,
@@ -123,24 +123,24 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
       toContractId("x1c") -> x1c,
     )
 
-  val readAs: Set[Party] = Set.empty
-  val let: Time.Timestamp = Time.Timestamp.now()
-  val participant: ParticipantId = ParticipantId.assertFromString("participant")
-  val submissionSeed: crypto.Hash = crypto.Hash.hashPrivateKey("submissionSeed")
+  private val readAs: Set[Party] = Set.empty
+  private val let: Time.Timestamp = Time.Timestamp.now()
+  private val participant: ParticipantId = ParticipantId.assertFromString("participant")
+  private val submissionSeed: crypto.Hash = crypto.Hash.hashPrivateKey("submissionSeed")
 
-  val lookupPackage: PackageId => Option[Package] =
+  private val lookupPackage: PackageId => Option[Package] =
     pkgId => allPackages.get(pkgId)
 
-  val lookupContract: ContractId => Option[VersionedContractInstance] =
+  private val lookupContract: ContractId => Option[VersionedContractInstance] =
     cid => defaultContracts.get(cid)
 
-  val lookupKey: GlobalKeyWithMaintainers => Option[ContractId] =
+  private val lookupKey: GlobalKeyWithMaintainers => Option[ContractId] =
     _ => None
 
-  val testEngine: Engine =
+  private val testEngine: Engine =
     Engine.DevEngine()
 
-  def go(
+  private def go(
       submitters: Set[Party],
       command: ApiCommand,
   ): Either[engine.Error, (SubmittedTransaction, Metadata)] = {

From a4c6f404c82abfbe5d09dd4ab7b27170394d20fb Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Mon, 18 Oct 2021 11:16:45 +0100
Subject: [PATCH 08/11] implicit Identifier creation

---
 .../daml/lf/engine/AuthPropagationSpec.scala  | 72 +++++++------------
 1 file changed, 27 insertions(+), 45 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index 30d9c0fdf7c4..c74e33aae52f 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -58,28 +58,16 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     "daml-lf/tests/AuthTests.dar"
   )
 
+  implicit private def toIdentifier(s: String): Identifier =
+    Identifier(packageId, QualifiedName.assertFromString(s"AuthTests:$s"))
+
   private def toContractId(s: String): ContractId = {
     val dummySuffix: Bytes = Bytes.assertFromString("00")
     ContractId.V1.assertBuild(crypto.Hash.hashPrivateKey(s), dummySuffix)
   }
 
-  private val t1: Identifier =
-    Identifier(packageId, QualifiedName.assertFromString("AuthTests:T1"))
-
-  private val t2: Identifier =
-    Identifier(packageId, QualifiedName.assertFromString("AuthTests:T2"))
-
-  // NICK: simplfy examples so just have one set of templates (not T and X)
-  private val x1: Identifier =
-    Identifier(packageId, QualifiedName.assertFromString("AuthTests:X1"))
-
   private val choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
-  private val choice1type: Identifier =
-    Identifier(packageId, QualifiedName.assertFromString("AuthTests:Choice1"))
-
   private val choiceAname: ChoiceName = ChoiceName.assertFromString("ChoiceA")
-  private val choiceAtype: Identifier =
-    Identifier(packageId, QualifiedName.assertFromString("AuthTests:ChoiceA"))
 
   private val alice: Party = Party.assertFromString("Alice")
   private val bob: Party = Party.assertFromString("Bob")
@@ -88,9 +76,9 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   private def t1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
       TransactionVersion.VDev,
-      t1,
+      "T1",
       ValueRecord(
-        Some(t1),
+        Some("T1"),
         ImmArray((Some[Name]("party"), ValueParty(party))),
       ),
       "",
@@ -100,27 +88,21 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   private def x1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
       TransactionVersion.VDev,
-      x1,
+      "X1",
       ValueRecord(
-        Some(x1),
+        Some("X1"),
         ImmArray((Some[Name]("party"), ValueParty(party))),
       ),
       "",
     )
   }
 
-  private val t1a = t1InstanceFor(alice)
-  private val t1b = t1InstanceFor(bob)
-
-  private val x1b = x1InstanceFor(bob)
-  private val x1c = x1InstanceFor(charlie)
-
   private val defaultContracts: Map[ContractId, VersionedContractInstance] =
     Map(
-      toContractId("t1a") -> t1a,
-      toContractId("t1b") -> t1b,
-      toContractId("x1b") -> x1b,
-      toContractId("x1c") -> x1c,
+      toContractId("t1a") -> t1InstanceFor(alice),
+      toContractId("t1b") -> t1InstanceFor(bob),
+      toContractId("x1b") -> x1InstanceFor(bob),
+      toContractId("x1c") -> x1InstanceFor(charlie),
     )
 
   private val readAs: Set[Party] = Set.empty
@@ -162,9 +144,9 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   "Create(T1)" - {
     val command: ApiCommand =
       CreateCommand(
-        t1,
+        "T1",
         ValueRecord(
-          Some(t1),
+          Some("T1"),
           ImmArray(
             (Some[Name]("party"), ValueParty(alice))
           ),
@@ -199,9 +181,9 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
   "Create(T2)" - {
     val command: ApiCommand =
       CreateCommand(
-        t2,
+        "T2",
         ValueRecord(
-          Some(t2),
+          Some("T2"),
           ImmArray(
             (Some[Name]("party1"), ValueParty(alice)),
             (Some[Name]("party2"), ValueParty(bob)),
@@ -243,11 +225,11 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     "ok (Alice signed contract; Bob exercised Choice)" in {
       val command: ApiCommand =
         ExerciseCommand(
-          t1,
+          "T1",
           toContractId("t1a"),
           choice1name,
           ValueRecord(
-            Some(choice1type),
+            Some("Choice1"),
             ImmArray(
               (Some[Name]("party1"), ValueParty(alice)),
               (Some[Name]("party2"), ValueParty(bob)),
@@ -264,11 +246,11 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     "fail: ExerciseMissingAuthorization" in {
       val command: ApiCommand =
         ExerciseCommand(
-          t1,
+          "T1",
           toContractId("t1a"),
           choice1name,
           ValueRecord(
-            Some(choice1type),
+            Some("Choice1"),
             ImmArray(
               (Some[Name]("party1"), ValueParty(alice)),
               (Some[Name]("party2"), ValueParty(bob)),
@@ -295,11 +277,11 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     "fail: CreateMissingAuthorization" in {
       val command: ApiCommand =
         ExerciseCommand(
-          t1,
+          "T1",
           toContractId("t1a"),
           choice1name,
           ValueRecord(
-            Some(choice1type),
+            Some("Choice1"),
             ImmArray(
               (Some[Name]("party1"), ValueParty(bob)),
               (Some[Name]("party2"), ValueParty(alice)),
@@ -326,11 +308,11 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     "ok (Bob signed contract; Alice exercised Choice)" in {
       val command: ApiCommand =
         ExerciseCommand(
-          t1,
+          "T1",
           toContractId("t1b"),
           choice1name,
           ValueRecord(
-            Some(choice1type),
+            Some("Choice1"),
             ImmArray(
               (Some[Name]("party1"), ValueParty(bob)),
               (Some[Name]("party2"), ValueParty(alice)),
@@ -350,11 +332,11 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     "fail (no implicit authority from outer exercise's contract's signatories)" in {
       val command: ApiCommand =
         ExerciseCommand(
-          x1,
+          "X1",
           toContractId("x1b"),
           choiceAname,
           ValueRecord(
-            Some(choiceAtype),
+            Some("ChoiceA"),
             ImmArray(
               (Some("cid"), ValueContractId(toContractId("x1c"))),
               (Some("controllerA"), ValueParty(alice)),
@@ -392,11 +374,11 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     "ok" in {
       val command: ApiCommand =
         ExerciseCommand(
-          x1,
+          "X1",
           toContractId("x1b"),
           choiceAname,
           ValueRecord(
-            Some(choiceAtype),
+            Some("ChoiceA"),
             ImmArray(
               (Some("cid"), ValueContractId(toContractId("x1c"))),
               (Some("controllerA"), ValueParty(alice)),

From e7030a83e2a14019a246c162c0bd66e03ee5459d Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Mon, 18 Oct 2021 11:25:41 +0100
Subject: [PATCH 09/11] use implicit for Party and ChoiceName creation

---
 .../daml/lf/engine/AuthPropagationSpec.scala  | 100 ++++++++----------
 1 file changed, 43 insertions(+), 57 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index c74e33aae52f..1319f677c63c 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -8,15 +8,7 @@ import com.daml.bazeltools.BazelRunfiles
 import com.daml.lf.archive.UniversalArchiveDecoder
 import com.daml.lf.command.{ApiCommand, Commands, CreateCommand, ExerciseCommand}
 import com.daml.lf.data.FrontStack
-import com.daml.lf.data.Ref.{
-  Name,
-  Party,
-  ParticipantId,
-  PackageId,
-  Identifier,
-  QualifiedName,
-  ChoiceName,
-}
+import com.daml.lf.data.Ref.{Name, Party, ParticipantId, PackageId, Identifier, QualifiedName}
 import com.daml.lf.data.Time
 import com.daml.lf.data.{ImmArray, Bytes}
 import com.daml.lf.language.Ast.Package
@@ -47,6 +39,7 @@ import scala.language.implicitConversions
 class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with BazelRunfiles {
 
   implicit private def toName(s: String): Name = Name.assertFromString(s)
+  implicit private def toParty(s: String): Party = Party.assertFromString(s)
 
   private def loadPackage(resource: String): (PackageId, Package, Map[PackageId, Package]) = {
     val packages = UniversalArchiveDecoder.assertReadFile(new File(rlocation(resource)))
@@ -66,13 +59,6 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
     ContractId.V1.assertBuild(crypto.Hash.hashPrivateKey(s), dummySuffix)
   }
 
-  private val choice1name: ChoiceName = ChoiceName.assertFromString("Choice1")
-  private val choiceAname: ChoiceName = ChoiceName.assertFromString("ChoiceA")
-
-  private val alice: Party = Party.assertFromString("Alice")
-  private val bob: Party = Party.assertFromString("Bob")
-  private val charlie: Party = Party.assertFromString("Charlie")
-
   private def t1InstanceFor(party: Party): VersionedContractInstance = {
     VersionedContractInstance(
       TransactionVersion.VDev,
@@ -99,10 +85,10 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
 
   private val defaultContracts: Map[ContractId, VersionedContractInstance] =
     Map(
-      toContractId("t1a") -> t1InstanceFor(alice),
-      toContractId("t1b") -> t1InstanceFor(bob),
-      toContractId("x1b") -> x1InstanceFor(bob),
-      toContractId("x1c") -> x1InstanceFor(charlie),
+      toContractId("t1a") -> t1InstanceFor("Alice"),
+      toContractId("t1b") -> t1InstanceFor("Bob"),
+      toContractId("x1b") -> x1InstanceFor("Bob"),
+      toContractId("x1c") -> x1InstanceFor("Charlie"),
     )
 
   private val readAs: Set[Party] = Set.empty
@@ -148,13 +134,13 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ValueRecord(
           Some("T1"),
           ImmArray(
-            (Some[Name]("party"), ValueParty(alice))
+            (Some[Name]("party"), ValueParty("Alice"))
           ),
         ),
       )
     "ok" in {
       val interpretResult = go(
-        submitters = Set(alice),
+        submitters = Set("Alice"),
         command = command,
       )
       interpretResult shouldBe a[Right[_, _]]
@@ -185,22 +171,22 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ValueRecord(
           Some("T2"),
           ImmArray(
-            (Some[Name]("party1"), ValueParty(alice)),
-            (Some[Name]("party2"), ValueParty(bob)),
+            (Some[Name]("party1"), ValueParty("Alice")),
+            (Some[Name]("party2"), ValueParty("Bob")),
           ),
         ),
       )
 
     "ok" in {
       val interpretResult = go(
-        submitters = Set(alice, bob),
+        submitters = Set("Alice", "Bob"),
         command = command,
       )
       interpretResult shouldBe a[Right[_, _]]
     }
     "fail" in {
       val interpretResult = go(
-        submitters = Set(alice),
+        submitters = Set("Alice"),
         command = command,
       )
       inside(interpretResult) {
@@ -227,17 +213,17 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ExerciseCommand(
           "T1",
           toContractId("t1a"),
-          choice1name,
+          "Choice1",
           ValueRecord(
             Some("Choice1"),
             ImmArray(
-              (Some[Name]("party1"), ValueParty(alice)),
-              (Some[Name]("party2"), ValueParty(bob)),
+              (Some[Name]("party1"), ValueParty("Alice")),
+              (Some[Name]("party2"), ValueParty("Bob")),
             ),
           ),
         )
       val interpretResult = go(
-        submitters = Set(bob),
+        submitters = Set("Bob"),
         command = command,
       )
       interpretResult shouldBe a[Right[_, _]]
@@ -248,17 +234,17 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ExerciseCommand(
           "T1",
           toContractId("t1a"),
-          choice1name,
+          "Choice1",
           ValueRecord(
             Some("Choice1"),
             ImmArray(
-              (Some[Name]("party1"), ValueParty(alice)),
-              (Some[Name]("party2"), ValueParty(bob)),
+              (Some[Name]("party1"), ValueParty("Alice")),
+              (Some[Name]("party2"), ValueParty("Bob")),
             ),
           ),
         )
       val interpretResult = go(
-        submitters = Set(alice),
+        submitters = Set("Alice"),
         command = command,
       )
       inside(interpretResult) {
@@ -279,17 +265,17 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ExerciseCommand(
           "T1",
           toContractId("t1a"),
-          choice1name,
+          "Choice1",
           ValueRecord(
             Some("Choice1"),
             ImmArray(
-              (Some[Name]("party1"), ValueParty(bob)),
-              (Some[Name]("party2"), ValueParty(alice)),
+              (Some[Name]("party1"), ValueParty("Bob")),
+              (Some[Name]("party2"), ValueParty("Alice")),
             ),
           ),
         )
       val interpretResult = go(
-        submitters = Set(alice),
+        submitters = Set("Alice"),
         command = command,
       )
       inside(interpretResult) {
@@ -310,17 +296,17 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ExerciseCommand(
           "T1",
           toContractId("t1b"),
-          choice1name,
+          "Choice1",
           ValueRecord(
             Some("Choice1"),
             ImmArray(
-              (Some[Name]("party1"), ValueParty(bob)),
-              (Some[Name]("party2"), ValueParty(alice)),
+              (Some[Name]("party1"), ValueParty("Bob")),
+              (Some[Name]("party2"), ValueParty("Alice")),
             ),
           ),
         )
       val interpretResult = go(
-        submitters = Set(alice),
+        submitters = Set("Alice"),
         command = command,
       )
       interpretResult shouldBe a[Right[_, _]]
@@ -334,28 +320,28 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ExerciseCommand(
           "X1",
           toContractId("x1b"),
-          choiceAname,
+          "ChoiceA",
           ValueRecord(
             Some("ChoiceA"),
             ImmArray(
               (Some("cid"), ValueContractId(toContractId("x1c"))),
-              (Some("controllerA"), ValueParty(alice)),
+              (Some("controllerA"), ValueParty("Alice")),
               (
                 Some("controllersB"),
                 ValueList(
                   FrontStack(
-                    ValueParty(alice)
+                    ValueParty("Alice")
                   )
                 ),
               ),
-              (Some("party1"), ValueParty(alice)),
-              (Some("party2"), ValueParty(bob)),
-              (Some("party3"), ValueParty(charlie)),
+              (Some("party1"), ValueParty("Alice")),
+              (Some("party2"), ValueParty("Bob")),
+              (Some("party3"), ValueParty("Charlie")),
             ),
           ),
         )
       val interpretResult = go(
-        submitters = Set(alice),
+        submitters = Set("Alice"),
         command = command,
       )
       inside(interpretResult) {
@@ -376,29 +362,29 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
         ExerciseCommand(
           "X1",
           toContractId("x1b"),
-          choiceAname,
+          "ChoiceA",
           ValueRecord(
             Some("ChoiceA"),
             ImmArray(
               (Some("cid"), ValueContractId(toContractId("x1c"))),
-              (Some("controllerA"), ValueParty(alice)),
+              (Some("controllerA"), ValueParty("Alice")),
               (
                 Some("controllersB"),
                 ValueList(
                   FrontStack(
-                    ValueParty(alice),
-                    ValueParty(bob), // bob must be an explicit controller on inner exercise
+                    ValueParty("Alice"),
+                    ValueParty("Bob"), // Bob must be an explicit controller on inner exercise
                   )
                 ),
               ),
-              (Some("party1"), ValueParty(alice)),
-              (Some("party2"), ValueParty(bob)),
-              (Some("party3"), ValueParty(charlie)),
+              (Some("party1"), ValueParty("Alice")),
+              (Some("party2"), ValueParty("Bob")),
+              (Some("party3"), ValueParty("Charlie")),
             ),
           ),
         )
       val interpretResult = go(
-        submitters = Set(alice),
+        submitters = Set("Alice"),
         command = command,
       )
       interpretResult shouldBe a[Right[_, _]]

From c971f54e2828248f92703034fcd0ee9820a4755f Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Mon, 18 Oct 2021 11:31:19 +0100
Subject: [PATCH 10/11] comment test purpose

---
 .../digitalasset/daml/lf/engine/AuthPropagationSpec.scala | 8 +++++++-
 1 file changed, 7 insertions(+), 1 deletion(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index 1319f677c63c..2971d5487321 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -315,6 +315,11 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
 
   "Exercise (within exercise)" - {
 
+    Specifically the interesting case is that in the body of
+
+    // Test that an inner exercise has only the authorization of the signatories and
+    // controllers; with no implicit authorization of signatories of the outer exercise.
+
     "fail (no implicit authority from outer exercise's contract's signatories)" in {
       val command: ApiCommand =
         ExerciseCommand(
@@ -373,7 +378,8 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
                 ValueList(
                   FrontStack(
                     ValueParty("Alice"),
-                    ValueParty("Bob"), // Bob must be an explicit controller on inner exercise
+                    // Adding Bob as an explicit controller of the inner exercise make the Authorization check pass again:
+                    ValueParty("Bob"),
                   )
                 ),
               ),

From b439d79199c90096a5f750e118f41acce5bac2d1 Mon Sep 17 00:00:00 2001
From: Nick Chapman <nick.chapman@digitalasset.com>
Date: Mon, 18 Oct 2021 11:55:57 +0100
Subject: [PATCH 11/11] delete stray text; fix build

---
 .../com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala   | 2 --
 1 file changed, 2 deletions(-)

diff --git a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
index 2971d5487321..ba712aad983f 100644
--- a/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
+++ b/daml-lf/engine/src/test/scala/com/digitalasset/daml/lf/engine/AuthPropagationSpec.scala
@@ -315,8 +315,6 @@ class AuthPropagationSpec extends AnyFreeSpec with Matchers with Inside with Baz
 
   "Exercise (within exercise)" - {
 
-    Specifically the interesting case is that in the body of
-
     // Test that an inner exercise has only the authorization of the signatories and
     // controllers; with no implicit authorization of signatories of the outer exercise.