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I personally believe in the merits of [[design by contract]]. As previously stated, formal documentation (and thus also formal contracts) are always preferrable over informal documentation (informal contracts, i.e. English text). If your contract changes, the formal specification of your function (through its type signature) might change, and the changes will be reflected throughout the program and typechecked everywhere where used by the compiler. I see something like a statically typed formal parameter as a way of formalising a precondition in a design contract.
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I will not give much attention to this point, because nowadays there are so many specific optimization techniques, that the issue of
===Static Typechecking===
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