--- a/spec/latest/json-ld-api/index.html	Thu Feb 14 13:34:43 2013 -0500
+++ b/spec/latest/json-ld-api/index.html	Thu Feb 14 13:47:11 2013 -0500
@@ -3545,13 +3545,14 @@
     <code>@id</code>:
     <ol class="algorithm">
       <li>
-        If <em>value</em> compacts to a <tref>term</tref> using the
-        <a href="#iri-compaction">IRI compaction</a>
-        algorithm, passing <tref>active context</tref>, <em>value</em> for
+        If the result of using the
+        <a href="#iri-compaction">IRI compaction</a> algorithm,
+        passing <tref>active context</tref>, <em>value</em> for
         <em>iri</em>, <tref>true</tref> for <em>vocabRelative</em>, and
-        <tref>true</tref> for <em>documentRelative</em> then append
-        <code>@vocab</code>, <code>@id</code>, and <code>@none</code>,
-        in that order, to <em>preferred values</em>.
+        <tref>true</tref> for <em>documentRelative</em> has a
+        <tref>term definition</tref> in <tref>active context</tref>,
+        then append <code>@vocab</code>, <code>@id</code>, and
+        <code>@none</code>, in that order, to <em>preferred values</em>.
       </li>
       <li>
         Otherwise, append <code>@id</code>, <code>@vocab</code>, and