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Declaratory relief is a judgment stating the parties’ rights and responsibilities with respect to a particular dispute between them. If both parties to a contract are unclear as to what their obligations and duties are under the contract, the parties to that contract will go to court and request the court to determine their rights under the contract. The judge interprets the contract and gives the parties specific clarification as to what their obligations are. That way, neither party risks nonperformance under the contract.