Doc Compare

Step 2: Identify Document Structure

For each document, identify:

• Section headings and hierarchy
• Numbered clauses (1.1, 1.2, etc.)
• Tables
• Definitions sections
• Signature blocks

Build a section map for both documents so you can align corresponding sections.

Step 3: Align Sections

Match sections between the two documents by:

1. Exact heading match
2. Fuzzy heading match (e.g., "Payment Terms" vs "Terms of Payment")
3. Numbered clause match (Section 3.2 in both)
4. Content similarity for unlabeled sections

Identify:

• Matched sections — exist in both documents
• Added sections — only in the "after" document
• Removed sections — only in the "before" document

Step 4: Analyze Changes

For each matched section, compare content and classify changes:

Change Types

• Modified — text changed within the section
• Added — new content within an existing section
• Removed — content deleted from a section
• Moved — content relocated to a different section
• Reformatted — structure changed but meaning preserved (note but don't flag)

For each change, determine:

• What changed — specific text or values
• From → To — the before and after values
• Significance — cosmetic, minor, major, or critical
• Risk level — none, low, medium, high

Step 5: Risk Analysis

Flag high-risk changes automatically:

Step 6: Generate Report

Write a structured comparison report:

# Document Comparison Report

**Document A:** contract-v1.pdf (12 pages, dated 2025-08-15)
**Document B:** contract-v2.pdf (14 pages, dated 2026-03-20)
**Compared:** 2026-03-31

## Summary

- **X sections modified**, **Y sections added**, **Z sections removed**
- **N high-risk changes** identified
- Overall assessment: [Minor revisions | Significant changes | Major restructuring]

## High-Risk Changes

### 1. Section 9 — Liability Cap
- **Change:** Removed entirely (was $500,000 cap in v1)
- **Risk:** HIGH — unlimited liability exposure
- **Recommendation:** Negotiate a cap or mutual limitation

### 2. ...

## All Changes

### Section 3.2 — Payment Terms
**Modified** | Risk: Medium

| Aspect | Before | After |
|--------|--------|-------|
| Payment window | Net-30 | Net-60 |
| Late fee | 1.5% | 2.5% |
| Early payment discount | 2% if paid within 10 days | Removed |

### Section 5 — Intellectual Property
**Added clause 5.4** | Risk: Medium

> New requirement for source code escrow with a third-party provider.
> Triggered upon bankruptcy, acquisition, or failure to maintain the software.

### Section 12 — Term
**Modified** | Risk: Medium

- Duration: 12 months → 24 months
- Auto-renewal: Not present → Added (60-day notice to cancel)

## Unchanged Sections

Sections 1, 2, 4, 6, 7, 8, 10, 11 — no material changes detected.

## Appendix: Full Text Diff

[Optional: include a traditional diff for reference]

Handling Large Documents

For documents that exceed comfortable analysis size:

1. Extract and align section maps first
2. Compare section-by-section rather than whole-document
3. Process the largest or most complex sections individually
4. Assemble the final report from section-level comparisons

Output Options

• Markdown report (default) — structured comparison as shown above
• JSON — machine-readable change list with metadata
• Summary only — just the high-risk changes and overall assessment

Error Handling

• If documents are completely different types (invoice vs. contract), warn the user
• If section alignment is uncertain, flag it: "Section 5 in v2 may correspond to Section 6 in v1 — please verify"
• If OCR quality differs between versions, note it
• Always include confidence indicators when alignment is ambiguous