A more thorough explanation:

Declaratory relief is a type of court decision that explains the rights of parties involved in a dispute without ordering any specific action or awarding damages. It is used when a party is unsure of their rights and wants to prevent further damage or conflict.

• A party seeking an interpretation of a contract to determine their rights.
• An insured individual seeking a specific determination of their rights and surrounding circumstances regarding insurance coverage under a specific policy.

These examples illustrate how declaratory relief can be used to clarify the rights of parties involved in a dispute. In the first example, a party may be unsure of their rights under a contract and seek a declaratory judgment to avoid any further disputes. In the second example, an insured individual may want to know their rights under a specific insurance policy to avoid any confusion or disputes with the insurance company.

The Declaratory Judgment Act is a federal statute that authorizes declaratory relief. It allows a court to issue a declaratory judgment in "a case of actual controversy within its jurisdiction." However, the court has discretion whether to exercise jurisdiction over a declaratory judgment action and must determine whether the complaint alleges an actual controversy.