diff --git a/ledger-core/virtual/execute/execute.go b/ledger-core/virtual/execute/execute.go
index 1b62bf88d9..348edcecbc 100644
--- a/ledger-core/virtual/execute/execute.go
+++ b/ledger-core/virtual/execute/execute.go
@@ -728,6 +728,8 @@ func (s *SMExecute) stepSendOutgoing(ctx smachine.ExecutionContext) smachine.Sta
 		}
 	} else {
 		if s.outgoingSentCounter >= MaxOutgoingSendCount {
+			// TODO when CallSummary will live longer than one pulse it needs to be updated
+			s.sendDelegatedRequestFinished(ctx, nil)
 			return ctx.Error(throw.E("outgoing retries limit"))
 		}
 
@@ -927,6 +929,12 @@ func (s *SMExecute) stepSendDelegatedRequestFinished(ctx smachine.ExecutionConte
 		}
 	}
 
+	s.sendDelegatedRequestFinished(ctx, lastState)
+
+	return ctx.Stop()
+}
+
+func (s *SMExecute) sendDelegatedRequestFinished(ctx smachine.ExecutionContext, lastState *payload.ObjectState) {
 	msg := payload.VDelegatedRequestFinished{
 		CallType:       s.Payload.CallType,
 		CallFlags:      s.Payload.CallFlags,
@@ -945,10 +953,9 @@ func (s *SMExecute) stepSendDelegatedRequestFinished(ctx smachine.ExecutionConte
 			}
 		}
 	}).WithoutAutoWakeUp().Start()
-
-	return ctx.Stop()
 }
 
+
 func (s *SMExecute) makeNewDescriptor(class reference.Global, memory []byte) descriptor.Object {
 	var prevStateIDBytes []byte
 	objDescriptor := s.execution.ObjectDescriptor
diff --git a/ledger-core/virtual/execute/execute.plantuml b/ledger-core/virtual/execute/execute.plantuml
index ef493b21f7..7ac5c37e56 100644
--- a/ledger-core/virtual/execute/execute.plantuml
+++ b/ledger-core/virtual/execute/execute.plantuml
@@ -147,7 +147,6 @@ state "stepSendDelegatedRequestFinished" as T01_S031
 T01_S031 : SMExecute
 T01_S031 --[dotted]> T01_S016
 T01_S031 --[dotted]> T01_S001
-T01_S031 --> T01_S011 : PrepareAsync(ctx).WithoutAutoWakeUp()
 T01_S031 --> [*]
 state "stepSendOutgoing" as T01_S025
 T01_S025 : SMExecute
diff --git a/ledger-core/virtual/handlers/vdelegatedrequestfinished.go b/ledger-core/virtual/handlers/vdelegatedrequestfinished.go
index e4002af089..f760cc2f4e 100644
--- a/ledger-core/virtual/handlers/vdelegatedrequestfinished.go
+++ b/ledger-core/virtual/handlers/vdelegatedrequestfinished.go
@@ -45,6 +45,12 @@ type unexpectedVDelegateRequestFinished struct {
 	Ordered  bool
 }
 
+type noLatestStateTolerableVDelegateRequestFinished struct {
+	*log.Msg `txt:"Tolerable VDelegateRequestFinished on Empty object has no LatestState"`
+	Object   reference.Holder
+	Request  reference.Holder
+}
+
 var dSMVDelegatedRequestFinishedInstance smachine.StateMachineDeclaration = &dSMVDelegatedRequestFinished{}
 
 type dSMVDelegatedRequestFinished struct {
@@ -154,6 +160,15 @@ func (s *SMVDelegatedRequestFinished) updateSharedState(
 	if s.hasLatestState() {
 		state.SetDescriptorDirty(s.latestState())
 		s.updateObjectState(state)
+	} else if s.Payload.CallFlags.GetInterference() == contract.CallTolerable &&
+		s.Payload.CallType == payload.CTConstructor &&
+		state.GetState() == object.Empty {
+
+		ctx.Log().Warn(noLatestStateTolerableVDelegateRequestFinished{
+			Object:  objectRef,
+			Request: requestRef,
+		})
+		state.SetState(object.Missing)
 	}
 
 	pendingList := state.PendingTable.GetList(s.Payload.CallFlags.GetInterference())
diff --git a/ledger-core/virtual/integration/contract_calls_test.go b/ledger-core/virtual/integration/contract_calls_test.go
index 8c1aee4975..126857b0a4 100644
--- a/ledger-core/virtual/integration/contract_calls_test.go
+++ b/ledger-core/virtual/integration/contract_calls_test.go
@@ -762,6 +762,8 @@ func TestVirtual_CallContractFromContract_RetryLimit(t *testing.T) {
 			return false
 		})
 
+		typedChecker.VDelegatedRequestFinished.Set(func(finished *payload.VDelegatedRequestFinished) bool { return false })
+
 	}
 
 	server.WaitIdleConveyor()
@@ -776,6 +778,8 @@ func TestVirtual_CallContractFromContract_RetryLimit(t *testing.T) {
 	testutils.WaitSignalsTimed(t, 10*time.Second, server.Journal.WaitAllAsyncCallsDone(), executeStopped, foundError)
 
 	require.Equal(t, countChangePulse, typedChecker.VCallRequest.Count())
+	require.Equal(t, countChangePulse, typedChecker.VDelegatedCallRequest.Count())
+	require.Equal(t, 1, typedChecker.VDelegatedRequestFinished.Count())
 
 	mc.Finish()