diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/InferredAnnotationsManagerImpl.java b/java/java-analysis-impl/src/com/intellij/codeInsight/InferredAnnotationsManagerImpl.java
index c67d4c995b1f..f5d21fd70282 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/InferredAnnotationsManagerImpl.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/InferredAnnotationsManagerImpl.java
@@ -82,24 +82,20 @@ public class InferredAnnotationsManagerImpl extends InferredAnnotationsManager {
     if (owner instanceof PsiMethod && PsiUtil.canBeOverriden((PsiMethod)owner)) {
       return true;
     }
-    if (ORG_JETBRAINS_ANNOTATIONS_CONTRACT.equals(annotationFQN) && hasHardcodedContracts(owner)) {
+    if (ORG_JETBRAINS_ANNOTATIONS_CONTRACT.equals(annotationFQN) && HardcodedContracts.hasHardcodedContracts(owner)) {
       return true;
     }
     if (AnnotationUtil.NOT_NULL.equals(annotationFQN) && owner instanceof PsiParameter && owner.getParent() != null) {
       if (AnnotationUtil.isAnnotated(owner, NullableNotNullManager.getInstance(owner.getProject()).getNullables(), false, false)) {
         return true;
       }
-      if (hasHardcodedContracts(owner.getParent().getParent())) {
+      if (HardcodedContracts.hasHardcodedContracts(owner)) {
         return true;
       }
     }
     return false;
   }
 
-  private static boolean hasHardcodedContracts(PsiElement owner) {
-    return owner instanceof PsiMethod && !HardcodedContracts.getHardcodedContracts((PsiMethod)owner, null).isEmpty();
-  }
-
   @Nullable
   private PsiAnnotation getInferredContractAnnotation(PsiMethod method) {
     if (method.getModifierList().findAnnotation(ORG_JETBRAINS_ANNOTATIONS_CONTRACT) != null) {
diff --git a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java
index f9e58134c860..05743b52c137 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java
@@ -164,4 +164,16 @@ public class HardcodedContracts {
 
     return true;
   }
+
+  public static boolean hasHardcodedContracts(@Nullable PsiElement element) {
+    if (element instanceof PsiMethod) {
+      return !getHardcodedContracts((PsiMethod)element, null).isEmpty();
+    }
+
+    if (element instanceof PsiParameter) {
+      return hasHardcodedContracts(element.getParent().getParent());
+    }
+
+    return false;
+  }
 }
diff --git a/java/openapi/src/com/intellij/codeInsight/NullableNotNullManagerImpl.java b/java/java-impl/src/com/intellij/codeInsight/NullableNotNullManagerImpl.java
similarity index 80%
rename from java/openapi/src/com/intellij/codeInsight/NullableNotNullManagerImpl.java
rename to java/java-impl/src/com/intellij/codeInsight/NullableNotNullManagerImpl.java
index c817c3019275..adb18e11b682 100644
--- a/java/openapi/src/com/intellij/codeInsight/NullableNotNullManagerImpl.java
+++ b/java/java-impl/src/com/intellij/codeInsight/NullableNotNullManagerImpl.java
@@ -15,13 +15,19 @@
  */
 package com.intellij.codeInsight;
 
+import com.intellij.codeInspection.dataFlow.HardcodedContracts;
 import com.intellij.openapi.components.State;
 import com.intellij.openapi.components.Storage;
 import com.intellij.openapi.components.StoragePathMacros;
+import com.intellij.psi.PsiElement;
 
 @State(
   name = "NullableNotNullManager",
   storages = {@Storage(file = StoragePathMacros.PROJECT_FILE)}
 )
 public class NullableNotNullManagerImpl extends NullableNotNullManager {
+  protected boolean hasHardcodedContracts(PsiElement element) {
+    return HardcodedContracts.hasHardcodedContracts(element);
+  }
+
 }
diff --git a/java/java-psi-api/src/com/intellij/codeInsight/InferredAnnotationsManager.java b/java/java-psi-api/src/com/intellij/codeInsight/InferredAnnotationsManager.java
index 3696c4c666cc..97401bc6f725 100644
--- a/java/java-psi-api/src/com/intellij/codeInsight/InferredAnnotationsManager.java
+++ b/java/java-psi-api/src/com/intellij/codeInsight/InferredAnnotationsManager.java
@@ -53,9 +53,6 @@ public abstract class InferredAnnotationsManager {
    * 
    * {@link Contract} and {@link NotNull} annotations on methods are not necessarily applicable to the overridden implementations, so they're ignored, too.<p/> 
    * 
-   * In addition, package-default annotations like @ParametersAreNonnullByDefault are not honored for parameters where 
-   * {@link NotNull} inference is ignored.
-   * 
    * @return whether inference is to be suppressed the given annotation on the given method or parameter  
    */
   public abstract boolean ignoreInference(@NotNull PsiModifierListOwner owner, @Nullable String annotationFQN);
diff --git a/java/java-psi-api/src/com/intellij/codeInsight/NullableNotNullManager.java b/java/java-psi-api/src/com/intellij/codeInsight/NullableNotNullManager.java
index ea5322cdd44f..3ade181e074b 100644
--- a/java/java-psi-api/src/com/intellij/codeInsight/NullableNotNullManager.java
+++ b/java/java-psi-api/src/com/intellij/codeInsight/NullableNotNullManager.java
@@ -36,7 +36,7 @@ import java.util.*;
  * User: anna
  * Date: 1/25/11
  */
-public class NullableNotNullManager implements PersistentStateComponent<Element> {
+public abstract class NullableNotNullManager implements PersistentStateComponent<Element> {
   private static final Logger LOG = Logger.getInstance("#" + NullableNotNullManager.class.getName());
 
   public String myDefaultNullable = AnnotationUtil.NULLABLE;
@@ -184,14 +184,16 @@ public class NullableNotNullManager implements PersistentStateComponent<Element>
     if (AnnotationUtil.isAnnotated(owner, nullable ? Arrays.asList(DEFAULT_NOT_NULLS) : Arrays.asList(DEFAULT_NULLABLES), checkBases, false)) {
       return null;
     }
-    
-    if (!nullable && InferredAnnotationsManager.getInstance(owner.getProject()).ignoreInference(owner, AnnotationUtil.NOT_NULL)) {
+
+    if (!nullable && hasHardcodedContracts(owner)) {
       return null;
     }
-
+    
     return findNullabilityDefaultInHierarchy(owner, nullable);
   }
 
+  protected abstract boolean hasHardcodedContracts(PsiElement element);
+
   @Nullable
   private static PsiType getOwnerType(PsiModifierListOwner owner) {
     if (owner instanceof PsiVariable) return ((PsiVariable)owner).getType();
diff --git a/java/java-tests/testData/inspection/dataFlow/fixture/CustomTypeQualifierDefault.java b/java/java-tests/testData/inspection/dataFlow/fixture/CustomTypeQualifierDefault.java
index e9ec6b1dbe11..47df47f35b44 100644
--- a/java/java-tests/testData/inspection/dataFlow/fixture/CustomTypeQualifierDefault.java
+++ b/java/java-tests/testData/inspection/dataFlow/fixture/CustomTypeQualifierDefault.java
@@ -1,5 +1,6 @@
 import foo.*;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
 
 class Some {
   void foo(@NotNull String s) {
@@ -18,6 +19,16 @@ class Some {
 @bar.MethodsAreNotNullByDefault
 class NotNullClass {
   static native Object foo(String s);
+  
+  public Object foo() {
+    return <warning descr="'null' is returned by the method declared as @NotNull">null</warning>;
+  }
+
+  @Nullable
+  public Object foo2() {
+    return null;
+  }
+  
 
 }
 class NullableClass {