diff --git a/src/cmd/new.rs b/src/cmd/new.rs
index f294e3cf30f4466fc2607d13b4574365bdc5f5ca..b7412347ed672dd53b783998115380075726d1bc 100644
--- a/src/cmd/new.rs
+++ b/src/cmd/new.rs
@@ -27,6 +27,10 @@ pub(crate) fn execute<P>(name: &str, dir: Option<P>) -> Result<Option<String>>
 where
     P: AsRef<Path>,
 {
+    if name.contains('.') {
+        anyhow::bail!("Contract names cannot contain periods");
+    }
+
     if name.contains('-') {
         anyhow::bail!("Contract names cannot contain hyphens");
     }
@@ -114,6 +118,19 @@ mod tests {
         })
     }
 
+    #[test]
+    fn rejects_name_with_period() {
+        with_tmp_dir(|path| {
+            let result = execute("../xxx", Some(path));
+            assert!(result.is_err(), "Should fail");
+            assert_eq!(
+                result.err().unwrap().to_string(),
+                "Contract names cannot contain periods"
+            );
+            Ok(())
+        })
+    }
+
     #[test]
     fn contract_cargo_project_already_exists() {
         with_tmp_dir(|path| {
diff --git a/templates/new/lib.rs b/templates/new/lib.rs
index c81744f882d3a6d40682656220c434b7cc3ccf78..4cb22b451bb82857a0a2e54019025881bbe4ccf6 100644
--- a/templates/new/lib.rs
+++ b/templates/new/lib.rs
@@ -53,14 +53,14 @@ mod {{name}} {
         use super::*;
 
         /// We test if the default constructor does its job.
-        #[test]
+        #[ink::test]
         fn default_works() {
             let {{name}} = {{camel_name}}::default();
             assert_eq!({{name}}.get(), false);
         }
 
         /// We test a simple use case of our contract.
-        #[test]
+        #[ink::test]
         fn it_works() {
             let mut {{name}} = {{camel_name}}::new(false);
             assert_eq!({{name}}.get(), false);