Ubiquitous Language is the term Eric Evans uses in Domain Driven Design for the practice of building up a common, rigorous language between developers and users. This language should be based on the Domain Model used in the software - hence the need for it to be rigorous, since software doesn't cope well with ambiguity.
Evans makes clear that using the ubiquitous language in conversations with domain experts is an important part of testing it, and hence the domain model. He also stresses that the language (and model) should evolve as the team's understanding of the domain grows.
By using the model-based language pervasively and not being satisfied until it flows, we approach a model that is complete and comprehensible, made up of simple elements that combine to express complex ideas.
Domain experts should object to terms or structures that are awkward or inadequate to convey domain understanding; developers should watch for ambiguity or inconsistency that will trip up design.
-- Eric Evans