What is Redlining?
Redlining is the process of marking changes between two versions of a document. The name comes from lawyers who used red pens to mark edits on paper contracts. Today, "redlining" usually means using software to compare documents and highlight differences.
In contract negotiations, redlining helps both sides see exactly what changed. A clean redline shows additions (usually in color or underlined), deletions (struck through), and sometimes comments explaining changes.
Microsoft Word offers two main ways to create redlines: Track Changes (for real-time editing) and Compare Documents (for comparing two separate files).
Method 1: Using Track Changes
Track Changes records edits as you make them. This works well when you're editing a document yourself and want to show what you changed.
Step-by-Step Instructions
- 1. Open your document in Microsoft Word.
- 2. Go to the Review tab in the ribbon at the top.
- 3. Click "Track Changes" to turn it on. The button will be highlighted when active.
- 4. Make your edits. Additions appear underlined (usually in red or blue). Deletions show as strikethrough.
- 5. Save the document. The tracked changes are saved with the file.
When you send this document to the other party, they can see every change you made. They can accept or reject changes individually, or accept/reject all at once.
Method 2: Compare Two Documents
Sometimes you receive two versions without track changes. Maybe the other side edited without Track Changes on. Maybe you need to compare a signed version against the draft. Word's Compare feature handles this.
Step-by-Step Instructions
- 1. Open Microsoft Word (you don't need to open either document first).
- 2. Go to Review → Compare → Compare Documents
- 3. Select your "Original document" (the earlier version).
- 4. Select your "Revised document" (the newer version).
- 5. Click OK. Word creates a new document showing all differences as tracked changes.
Tip: Adjust Comparison Settings
Click "More >>" in the Compare dialog to control what Word compares. You can choose to ignore formatting, case changes, white space, and more. For contracts, most lawyers leave these on to catch everything.
Common Mistakes to Avoid
Not saving the original first
Before making edits, save a clean copy of the original. You can't compare if you only have the edited version.
Forgetting Track Changes is on
Track Changes stays on until you turn it off. Internal notes or test edits might accidentally appear in the final redline.
Comparing the wrong versions
Always double-check which file is "Original" and which is "Revised." Flipping them reverses what shows as added vs. deleted.
Not reviewing in the right view
Use "All Markup" view to see changes inline. "Simple Markup" hides details. "No Markup" shows the final version without changes visible.
Why Word Compare Falls Short for Legal Work
Word's Compare feature works. But for contract review, it has serious limitations that waste time and create risk.
The Problems
- • Everything looks equally important. A deleted comma gets the same treatment as a deleted indemnity clause.
- • Moved paragraphs appear as deleted and re-added. If someone moved Section 4 to Section 7, Word shows Section 4 as completely deleted and Section 7 as completely new. You have to manually spot that it's the same text.
- • Formatting noise obscures real changes. Font changes, line spacing, paragraph numbering. It all clutters the redline.
- • No quick review signal. You get a marked-up document. You do not get priority guidance for what to review first.
For a two-page memo, Word Compare is fine. For a 50-page contract with hundreds of changes? You'll spend hours separating signal from noise.
"Word's comparison will tell me that an entire paragraph has been deleted and replaced, when only a word or two has been changed."
A Better Way: Trustworthy Document Comparison
clausul keeps the redline as the source of truth and adds clear change notes tied to those edits.
How clausul Is Different
- Material changes surface first. Money, dates, liability caps, indemnities. The things that matter appear at the top.
- Formatting noise is collapsed. You see "+14 formatting edits" instead of 14 separate marks cluttering your redline.
- Moved paragraphs are detected. clausul shows "Section 4 moved to Section 7" instead of marking it deleted and re-added.
- Change notes explain what changed. "Payment terms changed from Net 30 to Net 60. Liability cap increased from $500K to $2M." Each note links to exact edits.
You still get a proper redlined Word document with native track changes. You also get the context to know which changes to focus on first.