Why does my phone tell me 'contacts not working'?

[AC Question]

When I tap on my contact icon or a speed dial icon or when my phone rings, I get a message that my contacts have stopped working. When I tap again I get my contact list or the person I want to call. When my phone rings and I get the message, I have to tell it 'ok' before I can answer the phone.

 

[B. Diddy]

Welcome to Android Central! Which phone? Does this persist after a reboot?