Remedial Not Coercive Relief. A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants.A declaratory judgment is a judicial determination of the rights of respective parties, as opposed to coercive relief or damages. The purpose of declaratory. A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract. To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. First, is the constitutional inquiry. The Federal Declaratory Judgment Act creates a remedy, not a basis for jurisdiction; either diversity or federal question jurisdiction must still exist. The Federal Declaratory Judgment Act creates a remedy, not a basis for jurisdiction; either diversity or federal question jurisdiction must still exist. A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract.