Does the settlement have legal effect?

The agreement is legally binding. The settlement agreement is signed between the two parties, which is different from the conciliation statement, so it only has the effect of an ordinary contract. If one party breaches the contract, it only needs to bear the corresponding liability for breach of contract, and the liquidated damages can be agreed in the settlement agreement. If there is no agreement in the agreement, you can claim compensation for losses, and the parties can also bring a lawsuit to the court. The conciliation statement shall specify the claim, the facts of the case and the result of conciliation. The conciliation statement shall be signed by the judge and the clerk, stamped with the seal of the people's court and served on both parties. The conciliation statement has legal effect after being signed by both parties.

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

Article 49

The parties have the right to entrust an agent, apply for withdrawal, collect and provide evidence, argue, request mediation, file an appeal and apply for enforcement.

The parties may consult the relevant materials of this case and copy the relevant materials and legal documents of this case. The scope and methods of consulting and copying relevant materials in this case shall be stipulated by the Supreme People's Court.

The parties must exercise their litigation rights in accordance with the law, abide by the litigation order, and perform legally effective judgments, rulings and conciliation statements.