--- a/spec/latest/json-ld-api/index.html	Mon Apr 16 23:41:50 2012 +0200
+++ b/spec/latest/json-ld-api/index.html	Mon Apr 16 23:54:26 2012 +0200
@@ -1399,10 +1399,11 @@
 <h3>Compaction Algorithm</h3>
 
 <p>The algorithm takes three input variables: an <tref>active context</tref>, an <tref>active property</tref>,
-  and an <em>element</em> to be compacted. To begin, the <tref>active property</tref> is set to <tref>null</tref>,
-  and <em>element</em> is set to the result of performing the <a href="#expansion-algorithm">Expansion Algorithm</a>
-  on the <tref>JSON-LD input</tref>. This removes any existing context to allow the given <tref>active context</tref>
-  to be cleanly applied.</p>
+  and an <em>element</em> to be compacted. To begin, the <tref>active context</tref> is
+  set to the result of performing <a href="#context-processing">Context Processing</a> on the passed <em>context</em>,
+  <tref>active property</tref> is set to <tref>null</tref>, and <em>element</em> is set to the result of performing the
+  <a href="#expansion-algorithm">Expansion Algorithm</a> on the <tref>JSON-LD input</tref>. This removes any existing
+  context to allow the given <tref>active context</tref> to be cleanly applied.</p>
 
 <ol class="algorithm">
   <li>If <em>element</em> is an <tref>array</tref>, process each entry in <em>element</em> recursively
@@ -1451,6 +1452,11 @@
   </li>
   <li>Otherwise, the compacted <em>element</em> is <em>element</em>.</li>
 </ol>
+
+<p>If, after the algorithm outlined above is run, the resulting <em>element</em> is an <tref>array</tref>, put <em>element</em> into the
+  <code>@graph</code> property of a new <tref>JSON object</tref> and then set <em>element</em> to that <tref>JSON object</tref>.
+  Finally, add a <code>@context</code> property to <em>element</em> and set it to the initially passed <em>context</em>.</p>
+
 </section>
 
 </section>