A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract. Declaratory Judgement as the phrase suggests is a judgement which declares a right that a person possess over something eg a chattel.Courts have traditionally held that an insurance company has no right to intervene in the liability action against the insured to seek a coverage determination. A declaratory judgment is a judicial decree that defines the legal rights, duties, or obligations of parties in a dispute. 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. When plaintiffs want prospective relief, they usually request an injunction, a declaratory judgment, or both. A declaratory judgment is a judicial determination of the rights of respective parties, as opposed to coercive relief or damages. The purpose of declaratory. One argues that the declaratory judgment should contain an inherent obligation which would provide that states should act in a certain manner. Declaratory judgments can provide legal certainty to each party in a matter when this could resolve or assist in a disagreement.