A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract. A declaratory judgment is a binding judgment from a court defining the legal relationship between parties and their rights in a matter before the court.A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants. As to plaintiffs cause of action for a declaratory judgment the court is unable to grant such relief. The fundamental difference between declaratory judgment actions and nominaldamages claims also explains why courts have discretion to issue. What is the Judgment. The Judgment is an Order from the court that says that two people are divorced. A declaratory judgment is a legal tool that allows a court to make a statement or ruling on a legal issue or dispute without necessarily awarding damages. What Is a Declaratory Judgment? § 2410 ; the Declaratory Judgment Act; and the Administrative Procedure Act.