Declaratory Judgment Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Declaratory Judgment, written in plain English, along with examples of how it is used.

What is Declaratory Judgment?

n. A court judgment that doesn’t order anything to be done or award damages but determines the parties’ rights. Declaratory judgments are allowed to nip controversies in the bud, but border on advisory opinions which are prohibited. For example: An employer may request the court to rule whether a new tax is applicable to the business prior to paying it or a contract’s party may seek the interpretation of a contract in order to determine the parties’ rights.