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Redline — Purchase Agreement v2 vs v3
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Changes (12)OriginalRevised
Section 4.2 — IndemnificationModified
The Seller shall indemnify the Buyer for all claimsclaims exceeding $50,000 arising from breaches of representations and warranties made hereunder.
💡Introduces de minimis threshold — reduces Seller indemnification exposure
Section 7.1 — TermModified
This Agreement shall remain in effect for twelve (12) monthstwenty-four (24) months from the Effective Date, unless terminated earlier in accordance with Section 8.
💡Term extension from 1 year to 2 years — extended survival period for representations
Section 9.3 — Non-CompeteAdded
The Seller agrees not to engage in any business activities that compete directly or indirectly with the Business within the Territory for a period of three (3) years following the Closing Date. This restriction shall apply to the Seller and its affiliates.
⚠️New non-compete provision — verify enforceability under applicable state law
Section 5.4 — Exclusivity PeriodRemoved
During the period commencing on the date hereof and ending on the earlier of (i) the Closing Date or (ii) December 31, 2024, the Seller shall not solicit, negotiate, or enter into any agreement with any third party regarding the sale of the Business.
💡Exclusivity provision removed — Seller has more flexibility to negotiate with other parties
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Version History

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Frequently Asked Questions

Common questions about Mage Redline

Contract redlining is the process of comparing different versions of a contract to identify changes between them. The term comes from the practice of marking changes in red ink. In M&A transactions, redlining is essential for tracking negotiations and ensuring all parties understand what has changed between document versions.

AI contract comparison goes beyond simple text differences. Mage categorizes changes by legal significance (material vs. minor), provides context on the business impact of each modification, and can compare documents even when formatting differs. Unlike Word track changes, AI comparison works across different file formats and maintains accuracy even when documents have been reformatted.

Mage detects all types of changes including additions, deletions, and modifications. Changes are automatically categorized as material legal changes (affecting rights and obligations), material business changes (affecting commercial terms), or non-material changes (formatting, typos). Each change includes AI-generated context explaining its significance.

Yes, Mage can compare contracts across different formats including PDF, Word (.doc, .docx), and scanned documents with OCR. This is particularly useful in M&A where parties may exchange documents in different formats throughout negotiations.

Mage tracks changes across multiple negotiation rounds, maintaining a complete version history. You can compare any two versions, see the evolution of specific clauses over time, and generate summary reports showing how the document has changed from the initial draft to the current version.

Absolutely. Mage never trains on your documents and maintains zero data retention. All contract versions are encrypted (AES-256 at rest, TLS 1.3 in transit) and automatically purged after processing. Your data is never shared with third parties.

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