False.

A settlement agreement is not a substitute for an existing contract. Instead, it is a legal document that resolves a dispute between parties who are already bound by an existing agreement or arrangement. A settlement agreement typically includes terms and conditions that both parties agree to in order to resolve the dispute.

Unlike a contract, which establishes the terms and conditions of a business relationship, a settlement agreement aims to resolve a dispute that has arisen under an existing contract. For example, if two parties have a contract for the purchase of goods, and a dispute arises regarding the quality of the goods delivered, the parties may choose to enter into a settlement agreement to resolve the dispute rather than going to court.

While a settlement agreement may contain some of the same terms and conditions as the original contract, it is not a substitute for the original agreement. Rather, it is a separate legal document that resolves a dispute between the parties without requiring them to terminate their original agreement.

In addition to resolving disputes, settlement agreements can also be used to modify or amend existing contracts. For example, if both parties agree to change the terms of a contract, they may enter into a settlement agreement to modify the original agreement.

Overall, it is important to understand that a settlement agreement is not a substitute for a contract. Rather, it is a separate legal document used to resolve disputes and modify existing agreements. As a professional, it is important to accurately convey information such as this to ensure that readers have a clear understanding of the topic at hand.