diff --git a/purescript.cabal b/purescript.cabal
--- a/purescript.cabal
+++ b/purescript.cabal
@@ -1,5 +1,5 @@
 name: purescript
-version: 0.4.10
+version: 0.4.10.1
 cabal-version: >=1.8
 build-type: Custom
 license: MIT
@@ -20,7 +20,7 @@
 library
     build-depends: base >=4 && <5, cmdtheline -any, containers -any,
                    directory -any, filepath -any, mtl -any, parsec -any, syb -any,
-                   transformers -any, utf8-string -any, pattern-arrows -any, monad-unify >= 0.2 && < 0.3,
+                   transformers -any, utf8-string -any, pattern-arrows -any, monad-unify >= 0.2.1 && < 0.3,
                    xdg-basedir -any, time -any
     if (!os(windows))
         build-depends: unix -any
diff --git a/src/Language/PureScript/Sugar/Names.hs b/src/Language/PureScript/Sugar/Names.hs
--- a/src/Language/PureScript/Sugar/Names.hs
+++ b/src/Language/PureScript/Sugar/Names.hs
@@ -17,7 +17,7 @@
 ) where
 
 import Data.Data
-import Data.Maybe (fromMaybe, isJust)
+import Data.Maybe (fromMaybe, isJust, mapMaybe)
 import Data.Generics (extM, mkM, everywhereM)
 import Data.Generics.Extras (mkS, extS, everywhereWithContextM')
 
@@ -200,7 +200,7 @@
     rethrowFor "declaration" name $ ValueDeclaration name nameKind [] Nothing <$> updateAll val'
     where
     bindFunctionArgs bound (Abs (Left arg) val') = return (arg : bound, Abs (Left arg) val')
-    bindFunctionArgs bound (Let ds val') = let args = map letBoundVariable ds in
+    bindFunctionArgs bound (Let ds val') = let args = mapMaybe letBoundVariable ds in
                                            return (args ++ bound, Let ds val')
     bindFunctionArgs bound (Var name'@(Qualified Nothing ident)) | ident `notElem` bound =
       (,) bound <$> (Var <$> updateValueName name')
@@ -214,10 +214,10 @@
     bindBinders :: [Ident] -> CaseAlternative -> Either String ([Ident], CaseAlternative)
     bindBinders bound c@(CaseAlternative bs _ _) = return (binderNames bs ++ bound, c)
 
-    letBoundVariable :: Declaration -> Ident
-    letBoundVariable (ValueDeclaration ident _ _ _ _) = ident
+    letBoundVariable :: Declaration -> Maybe Ident
+    letBoundVariable (ValueDeclaration ident _ _ _ _) = Just ident
     letBoundVariable (PositionedDeclaration _ d) = letBoundVariable d
-    letBoundVariable _ = error "Invalid argument to letBoundVariable"
+    letBoundVariable _ = Nothing
   go (ValueDeclaration name _ _ _ _) = error $ "Binders should have been desugared in " ++ show name
   go (ExternDeclaration fit name js ty) =
       rethrowFor "declaration" name $ ExternDeclaration <$> pure fit <*> pure name <*> pure js <*> updateType' ty
@@ -448,4 +448,5 @@
       if item `elem` exports
       then return item
       else throwError $ "Unable to find " ++ t ++  " '" ++ show (Qualified (Just importModule) item) ++ "'"
+
 
diff --git a/src/Language/PureScript/TypeChecker/Types.hs b/src/Language/PureScript/TypeChecker/Types.hs
--- a/src/Language/PureScript/TypeChecker/Types.hs
+++ b/src/Language/PureScript/TypeChecker/Types.hs
@@ -585,7 +585,8 @@
 inferLetBinding seen (ValueDeclaration ident nameKind [] Nothing val : rest) ret j = do
   valTy <- fresh
   Just moduleName <- checkCurrentModule <$> get
-  TypedValue _ val' valTy' <- bindNames (M.singleton (moduleName, ident) (valTy, nameKind)) $ infer val
+  let dict = if isFunction val then M.singleton (moduleName, ident) (valTy, nameKind) else M.empty
+  TypedValue _ val' valTy' <- bindNames dict $ infer val
   valTy =?= valTy'
   bindNames (M.singleton (moduleName, ident) (valTy', nameKind)) $ inferLetBinding (seen ++ [ValueDeclaration ident nameKind [] Nothing val']) rest ret j
 inferLetBinding seen (BindingGroupDeclaration ds : rest) ret j = do