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The "External Contexts" section briefly mentions nested contexts. This seems out of place and could perhaps use it's own named spec section. We might want to use the terminology "scoped" instead of "nested". Many languages use "scope" including the new "scoped" attribute for the style tag in HTML5.
I'm guessing most processors are unlikely to preserve scoped contexts when various conversions are done. This should probably be mentioned in this section so people are not surprised if their scoped context disappears and their data is in more expanded form (depending on higher up contexts).
http://json-ld.org/spec/latest/json-ld-syntax/#external-contexts