Put the original contract (or the other party’s draft) in Version A and the revised contract (your draft, or the redlined copy) in Version B, then click Compare versions. The tool aligns the two texts with a longest-common-subsequence diff and shows a redline: lines only in the revised version appear as additions (green), lines only in the original appear as deletions (red), and lines that were reworded are highlighted down to the exact words that changed. You can read it inline (unified) or as a side-by-side. Above the redline it lists the clauses and sections that actually changed — detected from numbered, “Section”/“Article”, and ALL-CAPS headings — and flags any change touching liability, indemnification, payment, termination, IP, governing law or confidentiality as “review carefully”. Use Swap if you loaded the versions the wrong way round, and copy or export the redline as Markdown or text.

The Contract Compare / Redline tool runs completely client-side. The two texts you paste are diffed locally with a plain text-comparison algorithm, the redline is assembled in the browser, and nothing is uploaded, logged or stored on a server — the page even works offline once cached. That is the key difference from cloud redline or “contract AI” tools, which send both of your documents to their servers and sometimes use them to train models. Because neither version ever leaves the device, the tool is safe for confidential, NDA-bound or unsigned agreements. Only the redline you choose to copy or export ever leaves the page, and closing the tab discards everything.

Reviewers focus first on the clauses that move money and risk: limitation of liability (caps, exclusions, carve-outs), indemnification (who covers third-party claims and how broadly), payment terms (amount, schedule, late fees), termination (for cause or convenience, and the notice period), intellectual property ownership, and governing law and jurisdiction. A single undetected change to a liability cap or an indemnity can shift large amounts of risk from one party to the other, and subtle wording — “shall” versus “may”, “sole” versus “reasonable”, an added “not”, a changed number — can flip the meaning. AnyTool’s tool flags changes touching these high-risk topics as “review carefully” so you check them word-for-word, but it is a text comparison, not legal judgment — confirm the effect of every change with a qualified attorney.

The tool produces a genuine text redline — line and word diff, clause/section roll-up and high-risk flags — and it does so privately in your browser, unlike Microsoft Word’s compare (which needs the files in Word) or cloud tools (which upload your documents). But, like Word, it compares words, not legal meaning: it cannot tell whether a change is good for you, whether a new carve-out guts a protection, or whether a reworded clause is still enforceable. A flagged section is a prompt to look closer, not a verdict. Treat the redline as a fast, accurate first pass that tells you exactly what changed and where, then read the full contract yourself and consult a qualified attorney before signing anything material. It is not an AI, not a lawyer and not legal advice.