--- a/spec/latest/json-ld-api/index.html	Tue Jun 12 08:19:34 2012 -0700
+++ b/spec/latest/json-ld-api/index.html	Tue Jun 12 20:24:35 2012 -0400
@@ -1468,8 +1468,8 @@
   <p>The algorithm for compacting an expanded value <em>value</em> takes an <tref>active property</tref>
     and <tref>active context</tref>. It is implemented as follows:</p>
   <ol class="algorithm">
-    <li>If <em>value</em> only has one property, then the compacted value is the value
-      of <code>@value</code>.</li>
+    <li>If <em>value</em> only has one property and the <tref>active context</tref> has no default language,
+      then the compacted value is the value of <code>@value</code>.</li>
     <li>Otherwise, if <tref>active property</tref> is <code>@graph</code>, the compacted value is the
       value associated with the <code>@id</code> key, processed according to
       the <a href="#iri-compaction">IRI Compaction</a> steps.</li>