Practice — Chunking and Embedding Strategies (5 questions)

You're building RAG over a corpus of 20,000 signed legal contracts for an internal "ask a question about any contract" tool used by the legal team. Contracts have numbered clauses and sub-clauses (structure), but individual clauses are dense — a single clause can reference definitions from three sections earlier, and a question like "what's our liability cap under this contract?" may need the definitions section plus the liability clause plus an exceptions sub-clause to answer correctly.

1. Which chunking strategy would you start with, and why?
2. Legal wants citations down to the exact clause. How does that constrain your design?
3. How would you handle the cross-reference problem (a clause that only makes sense alongside a definition several sections away)?