Good question. On contour is rather a vague instruction, isn't it?
Things to consider - you don't want to put swales on too steep a slope, I'm thinking the recommended limit is about 15%, above that go with a net and pan approach rather than swales. Someone correct me if I have the grade wrong
You want to hold water as high as possible on your landscape, so the first swale wants to be high on the slope. Not clear up at the top, where it might not collect run off, but only a few feet below. Depending on the scale of your particular installation and your overall plans, you determine the distance you want between your swales.
If I had a slope with a natural terrace, I would be inclined to put my swale on the inside of the terrace, cutting into the slope above a bit and berming on the terrace. The terrace is sort of a swale analogue already, placing a swale immediately below seems redundant to me.