diff --git a/src-tool/Pact/Analyze/Translate.hs b/src-tool/Pact/Analyze/Translate.hs
index 5a9d62c17..d01d7556e 100644
--- a/src-tool/Pact/Analyze/Translate.hs
+++ b/src-tool/Pact/Analyze/Translate.hs
@@ -44,8 +44,7 @@ import           Data.Text                  (Text)
 import qualified Data.Text                  as T
 import           Data.Traversable           (for)
 import           Data.Type.Equality         ((:~:) (Refl))
-import           Numeric.Natural            (Natural)
-import           GHC.TypeLits               (SomeSymbol(..), someSymbolVal, symbolVal)
+import           GHC.TypeLits hiding (SSymbol)
 
 import qualified Pact.Types.Info as P
 import           Pact.Types.Lang
@@ -1604,10 +1603,10 @@ translateNode astNode = withAstContext astNode $ case astNode of
     tsFoundVars .= []
 
     Some tyb f'  <- translateNode f
-    (avid, _, _) <- captureOneFreeVar
+    (avid, _, _) <- captureFreeVar
 
     Some tyc g'  <- translateNode g
-    (bvid, _, _) <- captureOneFreeVar
+    (bvid, _, _) <- captureFreeVar
 
     -- important: we captured a, so we need to leave it free (by restoring
     -- tsFoundVars)
@@ -1617,9 +1616,8 @@ translateNode astNode = withAstContext astNode $ case astNode of
       Compose tya tyb tyc a' (Open avid "a" f') (Open bvid "b" g')
 
   AST_NFun node SMap [ fun, l ] -> do
-    expectNoFreeVars
     Some bTy fun' <- translateNode fun
-    captureOneFreeVar >>= \case
+    captureFreeVar >>= \case
       (vid, varName, EType aType) -> translateNode l >>= \case
         Some (SList listTy) l' -> do
           Refl <- singEq listTy aType ?? TypeError node
@@ -1628,9 +1626,8 @@ translateNode astNode = withAstContext astNode $ case astNode of
         _ -> unexpectedNode astNode
 
   AST_NFun node SFilter [ fun, l ] -> do
-    expectNoFreeVars
     translateNode fun >>= \case
-      Some SBool fun' -> captureOneFreeVar >>= \case
+      Some SBool fun' -> captureFreeVar >>= \case
         (vid, varName, EType aType) -> translateNode l >>= \case
           Some (SList listTy) l' -> do
             Refl <- singEq listTy aType ?? TypeError node
@@ -1640,7 +1637,6 @@ translateNode astNode = withAstContext astNode $ case astNode of
       _ -> unexpectedNode astNode
 
   AST_NFun node SFold [ fun, a, l ] -> do
-    expectNoFreeVars
     Some funTy fun' <- translateNode fun
 
     -- Note: The order of these variables is important. `a` should be the first
@@ -1651,8 +1647,8 @@ translateNode astNode = withAstContext astNode $ case astNode of
     --
     -- `a` encountered first, `b` will be consed on top of it, resulting in the
     -- variables coming out backwards.
-    captureTwoFreeVars >>= \case
-      [ (vidb, varNameb, EType tyb), (vida, varNamea, EType tya) ] -> do
+    liftM2 (,) captureFreeVar captureFreeVar >>= \case
+      ((vidb, varNameb, EType tyb), (vida, varNamea, EType tya)) -> do
         Some aTy' a' <- translateNode a
         translateNode l >>= \case
           Some (SList listTy) l' -> do
@@ -1662,17 +1658,15 @@ translateNode astNode = withAstContext astNode $ case astNode of
             pure $ Some tya $ CoreTerm $
               ListFold tya tyb (Open vida varNamea (Open vidb varNameb fun')) a' l'
           _ -> unexpectedNode astNode
-      _ -> unexpectedNode astNode
 
   AST_NFun _ name [ f, g, a ]
     | name == SAndQ || name == SOrQ -> do
-    expectNoFreeVars
     translateNode f >>= \case
       Some SBool f' -> do
-        (fvid, fvarName, _) <- captureOneFreeVar
+        (fvid, fvarName, _) <- captureFreeVar
         translateNode g >>= \case
           Some SBool g' -> do
-            (gvid, gvarName, _) <- captureOneFreeVar
+            (gvid, gvarName, _) <- captureFreeVar
             Some aTy' a' <- translateNode a
             pure $ Some SBool $ CoreTerm $ (if name == "and?" then AndQ else OrQ)
               aTy' (Open fvid fvarName f') (Open gvid gvarName g') a'
@@ -1681,9 +1675,8 @@ translateNode astNode = withAstContext astNode $ case astNode of
 
   AST_NFun _ SWhere [ field, fun, obj ] -> translateNode field >>= \case
     Some SStr field' -> do
-      expectNoFreeVars
       translateNode fun >>= \case
-        Some SBool fun' -> captureOneFreeVar >>= \case
+        Some SBool fun' -> captureFreeVar >>= \case
           (vid, varName, EType freeTy) -> translateNode obj >>= \case
             Some objTy@SObject{} obj' -> pure $ Some SBool $ CoreTerm $
               Where objTy freeTy field' (Open vid varName fun') obj'
@@ -1848,23 +1841,14 @@ trackCapScope capName act = do
   tsStaticCapsInScope .= current
   return r
 
-captureOneFreeVar :: TranslateM (VarId, Text, EType)
-captureOneFreeVar = do
-  vs <- use tsFoundVars
-  tsFoundVars .= []
-  case vs of
-    [v] -> pure v
-    _   -> throwError' $ FreeVarInvariantViolation $
-      "unexpected vars found: " <> tShow vs
-
-captureTwoFreeVars :: TranslateM [(VarId, Text, EType)]
-captureTwoFreeVars = do
+captureFreeVar :: TranslateM (VarId, Text, EType)
+captureFreeVar = do
   vs <- use tsFoundVars
-  tsFoundVars .= []
   case vs of
-    [_, _] -> pure vs
-    _      -> throwError' $ FreeVarInvariantViolation $
-      "unexpected vars found: " <> tShow vs
+    v:vs' -> do
+      tsFoundVars .= vs'
+      pure v
+    _ -> throwError' $ FreeVarInvariantViolation "expected var"
 
 expectNoFreeVars :: TranslateM ()
 expectNoFreeVars = do
@@ -1938,6 +1922,7 @@ runTranslation modName funName info caps pactArgs body checkType = do
               CheckDefconst
                 -> error "invariant violation: this cannot be a constant"
             _ <- extendPath -- form final edge for any remaining events
+            expectNoFreeVars
             pure res
 
           handleState translateState =
diff --git a/tests/AnalyzeSpec.hs b/tests/AnalyzeSpec.hs
index a04902ddb..2469351b8 100644
--- a/tests/AnalyzeSpec.hs
+++ b/tests/AnalyzeSpec.hs
@@ -4198,6 +4198,24 @@ spec = describe "analyze" $ do
         (typeof "foo"))
       |]
 
+  describe "nested application of higher-order functions (regression #1250)" $ do
+    expectVerified [text|
+        (defun child: bool (accParent: bool l: [integer])
+           (fold (lambda (acc:bool x:integer) (and (= x 0) acc)) accParent l))
+
+        (defun parent: bool ()
+           @model[(property (= result false))]
+           (fold (child) true [[1]]))
+     |]
+
+    expectVerified [text|
+        (defun child: [bool] (l : [integer])
+          (map (= 0) l))
+
+        (defun parent: [[bool]] ()
+          (map (child) [[1]]))
+     |]
+
   -- TODO: pending sbv unicode fix
   -- describe "unicode strings" $
   --   let code = [text|