Legal effect of settlement agreement

The effect of the settlement agreement is that if the two parties to the contract voluntarily reach a settlement agreement based on their true intentions, it will be binding on both parties after the settlement agreement takes effect. However, the settlement agreement reached is not legally binding. If one party fails to perform the settlement agreement and the other party applies to the people's court for compulsory execution, it will not be supported.

First, the basic contents of the settlement agreement include:

1, the situation and amount of debt disputes between the two parties;

2. Debt facts acknowledged by the debtor;

3. The time limit and amount of the debtor's debt repayment;

4. Give priority to debt repayment;

5. Consequences of late payment;

6. Both parties sign and take effect.

Second, the settlement agreement is divided into four parts:

1. Name, gender, date of birth and ID number, occupation, residence, address and contact information of the parties to the settlement;

2. Explain the detailed process of things that need to be reconciled;

3. List the mediation conditions reached by both parties in detail, including the contents, implementation methods, time, effective conditions and time of the mediation agreement;

4. The parties to the settlement shall sign by fingerprints, and the witnesses shall sign by fingerprints.

People's Republic of China (PRC) Civil Procedure Law

Article 230 If an interested party is unable to report to the people's court before the judgment due to justifiable reasons, he may bring a lawsuit to the people's court that made the judgment within one year from the date when he knew or should have known the announcement of the judgment.

Article 277 In the following cases of public prosecution, if the criminal suspect and the defendant sincerely repent and obtain the understanding of the victim by means of compensation for losses, apology, etc., and the victim voluntarily reconciles, the two parties may reconcile: (1) If a civil dispute is caused and a criminal case stipulated in Chapters IV and V of the Specific Provisions of the Criminal Law is suspected, he may be sentenced to fixed-term imprisonment of not more than three years; (two) criminal cases of negligence other than dereliction of duty that may be sentenced to fixed-term imprisonment of not more than seven years. If a criminal suspect or defendant intentionally commits a crime within five years, the procedures specified in this chapter shall not apply.