diff --git a/geth/node.go b/geth/node.go
index dbd23a893..238eab0c2 100644
--- a/geth/node.go
+++ b/geth/node.go
@@ -41,6 +41,7 @@ const (
 	MaxPeers         = 25
 	MaxLightPeers    = 20
 	MaxPendingPeers  = 0
+	DefaultGas       = 180000
 
 	ProcessFileDescriptorLimit = uint64(2048)
 	DatabaseCacheSize          = 128 // Megabytes of memory allocated to internal caching (min 16MB / database forced)
diff --git a/geth/testdata/test.sol b/geth/testdata/test.sol
new file mode 100644
index 000000000..49f83a8c6
--- /dev/null
+++ b/geth/testdata/test.sol
@@ -0,0 +1,7 @@
+pragma solidity ^0.4.9;
+
+contract Test {
+    function double(int a) constant returns(int) {
+        return 2*a;
+    }
+}
\ No newline at end of file
diff --git a/geth/txqueue.go b/geth/txqueue.go
index f96ac76d2..164cfba38 100644
--- a/geth/txqueue.go
+++ b/geth/txqueue.go
@@ -3,8 +3,6 @@ package geth
 import (
 	"context"
 	"encoding/json"
-	"math/big"
-	"strconv"
 
 	"github.com/ethereum/go-ethereum/accounts/keystore"
 	"github.com/ethereum/go-ethereum/common"
@@ -231,42 +229,120 @@ func sendTxArgsFromRPCCall(req RPCCall) status.SendTxArgs {
 		return status.SendTxArgs{}
 	}
 
-	params, ok := req.Params[0].(map[string]interface{})
+	return status.SendTxArgs{
+		From:     req.parseFromAddress(),
+		To:       req.parseToAddress(),
+		Value:    req.parseValue(),
+		Data:     req.parseData(),
+		Gas:      req.parseGas(),
+		GasPrice: req.parseGasPrice(),
+	}
+}
+
+func (r RPCCall) parseFromAddress() common.Address {
+	params, ok := r.Params[0].(map[string]interface{})
 	if !ok {
-		return status.SendTxArgs{}
+		return common.HexToAddress("0x")
 	}
 
 	from, ok := params["from"].(string)
 	if !ok {
-		from = ""
+		from = "0x"
+	}
+
+	return common.HexToAddress(from)
+}
+
+func (r RPCCall) parseToAddress() *common.Address {
+	params, ok := r.Params[0].(map[string]interface{})
+	if !ok {
+		return nil
 	}
 
 	to, ok := params["to"].(string)
 	if !ok {
-		to = ""
+		return nil
 	}
 
-	param, ok := params["value"].(string)
+	address := common.HexToAddress(to)
+	return &address
+}
+
+func (r RPCCall) parseData() hexutil.Bytes {
+	params, ok := r.Params[0].(map[string]interface{})
 	if !ok {
-		param = "0x0"
-	}
-	value, err := strconv.ParseInt(param, 0, 64)
-	if err != nil {
-		return status.SendTxArgs{}
+		return hexutil.Bytes("0x")
 	}
 
 	data, ok := params["data"].(string)
 	if !ok {
-		data = ""
+		data = "0x"
 	}
 
-	toAddress := common.HexToAddress(to)
-	return status.SendTxArgs{
-		From:  common.HexToAddress(from),
-		To:    &toAddress,
-		Value: (*hexutil.Big)(big.NewInt(value)),
-		Data:  hexutil.Bytes(data),
+	byteCode, err := hexutil.Decode(data)
+	if err != nil {
+		byteCode = hexutil.Bytes(data)
 	}
+
+	return byteCode
+}
+
+func (r RPCCall) parseValue() *hexutil.Big {
+	params, ok := r.Params[0].(map[string]interface{})
+	if !ok {
+		return nil
+		//return (*hexutil.Big)(big.NewInt("0x0"))
+	}
+
+	inputValue, ok := params["value"].(string)
+	if !ok {
+		return nil
+	}
+
+	parsedValue, err := hexutil.DecodeBig(inputValue)
+	if err != nil {
+		return nil
+	}
+
+	return (*hexutil.Big)(parsedValue)
+}
+
+func (r RPCCall) parseGas() *hexutil.Big {
+	params, ok := r.Params[0].(map[string]interface{})
+	if !ok {
+		return nil
+	}
+
+	inputValue, ok := params["gas"].(string)
+	if !ok {
+		return nil
+	}
+
+	parsedValue, err := hexutil.DecodeBig(inputValue)
+	if err != nil {
+		return nil
+	}
+
+	return (*hexutil.Big)(parsedValue)
+}
+
+func (r RPCCall) parseGasPrice() *hexutil.Big {
+	params, ok := r.Params[0].(map[string]interface{})
+	if !ok {
+		return nil
+	}
+
+	inputValue, ok := params["gasPrice"].(string)
+	if !ok {
+		return nil
+	}
+
+	parsedValue, err := hexutil.DecodeBig(inputValue)
+	if err != nil {
+		return nil
+	}
+
+	return (*hexutil.Big)(parsedValue)
 }
 
 func parseJSONArray(items string) ([]string, error) {
diff --git a/geth/txqueue_test.go b/geth/txqueue_test.go
index e5058754b..26d5753bd 100644
--- a/geth/txqueue_test.go
+++ b/geth/txqueue_test.go
@@ -14,6 +14,113 @@ import (
 	"github.com/status-im/status-go/geth"
 )
 
+func TestQueuedContracts(t *testing.T) {
+	err := geth.PrepareTestNode()
+	if err != nil {
+		t.Error(err)
+		return
+	}
+
+	// obtain reference to status backend
+	lightEthereum, err := geth.NodeManagerInstance().LightEthereumService()
+	if err != nil {
+		t.Errorf("Test failed: LES service is not running: %v", err)
+		return
+	}
+	backend := lightEthereum.StatusBackend
+
+	// create an account
+	sampleAddress, _, _, err := geth.CreateAccount(newAccountPassword)
+	if err != nil {
+		t.Errorf("could not create account: %v", err)
+		return
+	}
+
+	geth.Logout()
+
+	// make sure you panic if transaction complete doesn't return
+	completeQueuedTransaction := make(chan struct{}, 1)
+	geth.PanicAfter(60*time.Second, completeQueuedTransaction, "TestQueuedContracts")
+
+	// replace transaction notification handler
+	var txHash = common.Hash{}
+	geth.SetDefaultNodeNotificationHandler(func(jsonEvent string) {
+		var envelope geth.SignalEnvelope
+		if err := json.Unmarshal([]byte(jsonEvent), &envelope); err != nil {
+			t.Errorf("cannot unmarshal event's JSON: %s", jsonEvent)
+			return
+		}
+		if envelope.Type == geth.EventTransactionQueued {
+			event := envelope.Event.(map[string]interface{})
+			t.Logf("transaction queued (will be completed in 5 secs): {id: %s}\n", event["id"].(string))
+			time.Sleep(5 * time.Second)
+
+			// the first call will fail (we are not logged in, but trying to complete tx)
+			if txHash, err = geth.CompleteTransaction(event["id"].(string), testAddressPassword); err != status.ErrInvalidCompleteTxSender {
+				t.Errorf("expected error on queued transation[%v] not thrown: expected %v, got %v", event["id"], status.ErrInvalidCompleteTxSender, err)
+				return
+			}
+
+			// the second call will also fail (we are logged in as different user)
+			if err := geth.SelectAccount(sampleAddress, newAccountPassword); err != nil {
+				t.Errorf("cannot select account: %v", sampleAddress)
+				return
+			}
+			if txHash, err = geth.CompleteTransaction(event["id"].(string), testAddressPassword); err != status.ErrInvalidCompleteTxSender {
+				t.Errorf("expected error on queued transation[%v] not thrown: expected %v, got %v", event["id"], status.ErrInvalidCompleteTxSender, err)
+				return
+			}
+
+			// the third call will work as expected (as we are logged in with correct credentials)
+			if err := geth.SelectAccount(testAddress, testAddressPassword); err != nil {
+				t.Errorf("cannot select account: %v", testAddress)
+				return
+			}
+			if txHash, err = geth.CompleteTransaction(event["id"].(string), testAddressPassword); err != nil {
+				t.Errorf("cannot complete queued transation[%v]: %v", event["id"], err)
+				return
+			}
+
+			t.Logf("contract transaction complete: https://testnet.etherscan.io/tx/%s", txHash.Hex())
+			completeQueuedTransaction <- struct{}{} // so that timeout is aborted
+		}
+	})
+
+	//  this call blocks, up until Complete Transaction is called
+	byteCode, err := hexutil.Decode(`0x6060604052341561000c57fe5b5b60a58061001b6000396000f30060606040526000357c0100000000000000000000000000000000000000000000000000000000900463ffffffff1680636ffa1caa14603a575bfe5b3415604157fe5b60556004808035906020019091905050606b565b6040518082815260200191505060405180910390f35b60008160020290505b9190505600a165627a7a72305820ccdadd737e4ac7039963b54cee5e5afb25fa859a275252bdcf06f653155228210029`)
+	if err != nil {
+		t.Error(err)
+		return
+	}
+	txHashCheck, err := backend.SendTransaction(nil, status.SendTxArgs{
+		From: geth.FromAddress(testAddress),
+		To:   nil, // marker, contract creation is expected
+		//Value: (*hexutil.Big)(new(big.Int).Mul(big.NewInt(1), common.Ether)),
+		Gas:  (*hexutil.Big)(big.NewInt(geth.DefaultGas)),
+		Data: byteCode,
+	})
+	if err != nil {
+		t.Errorf("Test failed: cannot send transaction: %v", err)
+	}
+
+	if !reflect.DeepEqual(txHash, txHashCheck) {
+		t.Errorf("Transaction hash returned from SendTransaction is invalid: expected %s, got %s", txHashCheck, txHash)
+		return
+	}
+
+	time.Sleep(10 * time.Second)
+
+	if reflect.DeepEqual(txHashCheck, common.Hash{}) {
+		t.Error("Test failed: transaction was never queued or completed")
+		return
+	}
+
+	if backend.TransactionQueue().Count() != 0 {
+		t.Error("tx queue must be empty at this point")
+		return
+	}
+}
+
 func TestQueuedTransactions(t *testing.T) {
 	err := geth.PrepareTestNode()
 	if err != nil {
diff --git a/jail/jail_test.go b/jail/jail_test.go
index aaf0e95ee..b70a639ba 100644
--- a/jail/jail_test.go
+++ b/jail/jail_test.go
@@ -3,6 +3,7 @@ package jail_test
 import (
 	"encoding/json"
 	"reflect"
+	"strconv"
 	"strings"
 	"testing"
 	"time"
@@ -562,3 +563,94 @@ func TestLocalStorageSet(t *testing.T) {
 		return
 	}
 }
+
+func TestContractDeployment(t *testing.T) {
+	err := geth.PrepareTestNode()
+	if err != nil {
+		t.Error(err)
+		return
+	}
+
+	jailInstance := jail.Init("")
+	jailInstance.Parse(CHAT_ID_CALL, "")
+
+	// obtain VM for a given chat (to send custom JS to jailed version of Send())
+	vm, err := jailInstance.GetVM(CHAT_ID_CALL)
+	if err != nil {
+		t.Errorf("cannot get VM: %v", err)
+		return
+	}
+
+	// make sure you panic if transaction complete doesn't return
+	completeQueuedTransaction := make(chan struct{}, 1)
+	geth.PanicAfter(30*time.Second, completeQueuedTransaction, "TestContractDeployment")
+
+	// replace transaction notification handler
+	var txHash common.Hash
+	geth.SetDefaultNodeNotificationHandler(func(jsonEvent string) {
+		var envelope geth.SignalEnvelope
+		if err := json.Unmarshal([]byte(jsonEvent), &envelope); err != nil {
+			t.Errorf("cannot unmarshal event's JSON: %s", jsonEvent)
+			return
+		}
+		if envelope.Type == geth.EventTransactionQueued {
+			event := envelope.Event.(map[string]interface{})
+
+			t.Logf("Transaction queued (will be completed in 5 secs): {id: %s}\n", event["id"].(string))
+			time.Sleep(5 * time.Second)
+
+			if err := geth.SelectAccount(TEST_ADDRESS, TEST_ADDRESS_PASSWORD); err != nil {
+				t.Errorf("cannot select account: %v", TEST_ADDRESS)
+				return
+			}
+
+			if txHash, err = geth.CompleteTransaction(event["id"].(string), TEST_ADDRESS_PASSWORD); err != nil {
+				t.Errorf("cannot complete queued transation[%v]: %v", event["id"], err)
+				return
+			} else {
+				t.Logf("Contract created: https://testnet.etherscan.io/tx/%s", txHash.Hex())
+			}
+
+			close(completeQueuedTransaction) // so that timeout is aborted
+		}
+	})
+
+	_, err = vm.Run(`
+		var responseValue = null;
+		var testContract = web3.eth.contract([{"constant":true,"inputs":[{"name":"a","type":"int256"}],"name":"double","outputs":[{"name":"","type":"int256"}],"payable":false,"type":"function"}]);
+		var test = testContract.new(
+		{
+			from: '` + TEST_ADDRESS + `',
+			data: '0x6060604052341561000c57fe5b5b60a58061001b6000396000f30060606040526000357c0100000000000000000000000000000000000000000000000000000000900463ffffffff1680636ffa1caa14603a575bfe5b3415604157fe5b60556004808035906020019091905050606b565b6040518082815260200191505060405180910390f35b60008160020290505b9190505600a165627a7a72305820ccdadd737e4ac7039963b54cee5e5afb25fa859a275252bdcf06f653155228210029',
+			gas: '` + strconv.Itoa(geth.DefaultGas) + `'
+		}, function (e, contract){
+			if (!e) {
+				responseValue = contract.transactionHash
+			}
+		})
+	`)
+	if err != nil {
+		t.Errorf("cannot run custom code on VM: %v", err)
+		return
+	}
+
+	<-completeQueuedTransaction
+
+	responseValue, err := vm.Get("responseValue")
+	if err != nil {
+		t.Errorf("cannot obtain result of isConnected(): %v", err)
+		return
+	}
+
+	response, err := responseValue.ToString()
+	if err != nil {
+		t.Errorf("cannot parse result: %v", err)
+		return
+	}
+
+	expectedResponse := txHash.Hex()
+	if !reflect.DeepEqual(response, expectedResponse) {
+		t.Errorf("expected response is not returned: expected %s, got %s", expectedResponse, response)
+		return
+	}
+}