The use of Coulomb’s friction law with the principles of classical rigid-body dynamics introduces mathematical inconsistencies. Specifically, the forward dynamics problem can have no solutions or multiple solutions. In these situations, compliant contact models, while increasing the dimensionality of the state vector, can resolve these problems. The simplicity and efficiency of rigid-body models, however, provide strong motivation for their use during those portions of a simulation when the rigid-body solution is unique and stable. In this paper, we use singular perturbation analysis in conjunction with linear complementarity theory to establish conditions under which the solution predicted by the rigid-body dynamic model is stable. We employ a general model of contact compliance to derive stability criteria for planar mechanical systems. In particular, we show that for cases with one sliding contact, there is always at most one stable solution. Our approach is not directly applicable to transitions between rolling and sliding where the Coulomb friction law is discontinuous. To overcome this difficulty, we introduce a smooth nonlinear friction law, which approximates Coulomb friction. Such a friction model can also increase the efficiency of both rigid-body and compliant contact simulation. Numerical simulations for the different models and comparison with experimental results are also presented.