Abstract: China's current system of defective execution of settlement agreement has some practical difficulties,such as too few rights relief situations,single subject of rights exercise and improper way of rights exercise. This dilemma is based on the fact that legislators ignore the inherent private law nature of the settlement agreement. The idea of creditor centrism and efficiency value priority concept they adopted is against the concept of interest measurement and the thought of multiple value balance. In order to perfect system of defective execution of settlement agreement,the principle of proportionality,efficiency and equity should be used to guide the system arrangement and judicial application. In terms of specific rules,the system design which equates the execution of settlement agreement and civil contract should be amended:In the aspect of right relief situations,we should define all the defects of effect in substantive law except obvious unfairness as the situations of right relief; In the aspect of the subject of rights exercise,the subject of the exercise of rights should be redefined according to the types of defects of effect in substantive law;In the aspect of the way of exercising the rights,we should add the procedure of realizing the rights of the parties after the execution.