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0 tracked cards Civil Procedure

Parties settle a first lawsuit and the court enters a dismissal with prejudice. The settlement agreement says nothing about whether any facts are admitted.
Which statement best describes preclusion in later litigation?

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A settlement may have claim-preclusive effect if embodied in a final judgment, but it usually does not support issue preclusion unless the parties clearly intended an issue to be conclusively determined. Every settlement automatically decides all factual issues for future litigation. Issue preclusion applies after every settlement because settlement is the same as actual litigation. A settlement has preclusive effect only if the agreement is handwritten.

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