Declaratory Judgment Legal Meaning and Definition

Here is a simplified definition of the legal term Declaratory Judgment.

Declaratory Judgment (noun): A legal judgment from a court that defines the rights or legal obligations of the parties involved in a dispute, without ordering any action to be taken or awarding damages. This type of judgment is designed to prevent future legal disputes by clarifying the law or contract terms beforehand. For instance, a company may ask a court to determine if a new tax applies to them before they actually pay it.