--- a/spec/latest/json-ld-api/index.html	Thu Mar 14 17:34:47 2013 +0100
+++ b/spec/latest/json-ld-api/index.html	Thu Mar 14 18:24:28 2013 +0100
@@ -901,14 +901,18 @@
                   <code class="error"><a href="#idl-def-JsonLdErrorCode.recursive-context-inclusion">recursive context inclusion</a></code>
                   error has been detected;
                   otherwise, add <i>context</i> to <i>remote contexts</i>.</li>
+                <li>Initialize <i>context new base</i> to the result of cloning the
+                  <tref>active context</tref>.</li>
+                <li>Set the <tref>base IRI</tref> of <i>context new base</i> to <i>context</i>.</li>
                 <li>Dereference <i>context</i>. If the dereferenced document has no
                   top-level <tref>JSON object</tref> with an <code>@context</code> member, an
                   <code class="error"><a href="#idl-def-JsonLdErrorCode.invalid-remote-context">invalid remote context</a></code>
                   has been detected; otherwise,
                   set <i>context</i> to the value of that member.</li>
                 <li>Set <i>result</i> to the result of recursively calling this algorithm,
-                  passing <tref>active context</tref>, <i>context</i> as <tref>local context</tref>,
-                  and <i>remote contexts</i> and continue with the next <i>context</i>..</li>
+                  passing <i>context new base</i> for <tref>active context</tref>,
+                  <i>context</i> for <tref>local context</tref>,
+                  and <i>remote contexts</i> and continue with the next <i>context</i>.</li>
               </ol>
             <li>If <i>context</i> is not a <tref>JSON object</tref>, a
               <code class="error"><a href="#idl-def-JsonLdErrorCode.invalid-local-context">invalid local context</a></code>