Also: Task Complete Definition, Punch List
A Team’s universally agreed-upon criteria for what makes a unit of work “potentially shippable.” This checklist of steps that must be completed for each unit of work (e.g., task or user story) may include items like “documentation created,” “code review completed,” “all tests created and passing,” etc. The Definition of Done usually takes the form of an information radiator, being posted prominently in the team’s workspace.
A well-crafted Definition of Done may prevent the accumulation of technical debt that naturally arises when team members define “done” loosely and colloquially.
In Extreme Programming, the Definition of Done may be referred to as Task Complete Definition, a Punch List, or a Binary Milestone.
Agile Learning Labs blog post – Definition of Done