What is the test for declaratory relief?

A declaration must be distinguished from a finding of fact. This was discussed by Justice Lang at para. 27 in Harrison v. Antonopoulos (2002), 2002 CanLII 28725 (ON SC), 62 O.R. (3d) 463 (S.C.): Declaratory relief, being only a declaration of parties’ rights, is mainly sought in commercial matters to help parties define their rights, and as a means to settle matters amicably where reasonable people would otherwise disagree on their mutual obligations and wish to resolve the matter in order to avoid future disputes. In other words, a cause of action need not be extant at the time a party requests declaratory relief. Because declaratory relief is in essence a request for an advance ruling, courts have discretion to refuse such relief. This is the type of relief contemplated by s. 108(2) of the [Courts of Justice Act] — a declaration of parties’ rights with no coercive effect or remedial entitlement. Position of the Crown