Note [No nested foralls or contexts in instance types]

GHC/Hs/Type.hs:1043 compiler 1 ticket

The type at the top of an instance declaration is one of the few places in GHC
where nested `forall`s or contexts are not permitted, even with RankNTypes
enabled. For example, the following will be rejected:

  instance forall a. forall b. Show (Either a b) where ...
  instance Eq a => Eq b => Show (Either a b) where ...
  instance (forall a. Show (Maybe a)) where ...
  instance (Eq a => Show (Maybe a)) where ...

This restriction is partly motivated by an unusual quirk of instance
declarations. Namely, if ScopedTypeVariables is enabled, then the type
variables from the top of an instance will scope over the bodies of the
instance methods, /even if the type variables are implicitly quantified/.
For example, GHC will accept the following:

  instance Monoid a => Monoid (Identity a) where
    mempty = Identity (mempty @a)

Moreover, the type in the top of an instance declaration must obey the
forall-or-nothing rule (see Note [forall-or-nothing rule]).
If instance types allowed nested `forall`s, this could
result in some strange interactions. For example, consider the following:

  class C a where
    m :: Proxy a
  instance (forall a. C (Either a b)) where
    m = Proxy @(Either a b)

Somewhat surprisingly, old versions of GHC would accept the instance above.
Even though the `forall` only quantifies `a`, the outermost parentheses mean
that the `forall` is nested, and per the forall-or-nothing rule, this means
that implicit quantification would occur. Therefore, the `a` is explicitly
bound and the `b` is implicitly bound. Moreover, ScopedTypeVariables would
bring /both/ sorts of type variables into scope over the body of `m`.
How utterly confusing!

To avoid this sort of confusion, we simply disallow nested `forall`s in
instance types, which makes things like the instance above become illegal.
For the sake of consistency, we also disallow nested contexts, even though they
don't have the same strange interaction with ScopedTypeVariables.

Just as we forbid nested `forall`s and contexts in normal instance
declarations, we also forbid them in SPECIALISE instance pragmas (#18455).
Unlike normal instance declarations, ScopedTypeVariables don't have any impact
on SPECIALISE instance pragmas, but we use the same validity checks for
SPECIALISE instance pragmas anyway to be consistent.


Wrinkle: Derived instances


`deriving` clauses and standalone `deriving` declarations also permit bringing
type variables into scope, either through explicit or implicit quantification.
Unlike in the tops of instance declarations, however, one does not need to
enable ScopedTypeVariables for this to take effect.

Just as GHC forbids nested `forall`s in the top of instance declarations, it
also forbids them in types involved with `deriving`:

1. In the `via` types in DerivingVia. For example, this is rejected:

     deriving via (forall x. V x) instance C (S x)

   Just like the types in instance declarations, `via` types can also bring
   both implicitly and explicitly bound type variables into scope. As a result,
   we adopt the same no-nested-`forall`s rule in `via` types to avoid confusing
   behavior like in the example below:

     deriving via (forall x. T x y) instance W x y (Foo a b)
     Both x and y are brought into scope???
2. In the classes in `deriving` clauses. For example, this is rejected:

     data T = MkT deriving (C1, (forall x. C2 x y))

   This is because the generated instance would look like:

     instance forall x y. C2 x y T where ...

   So really, the same concerns as instance declarations apply here as well.

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