Let’s say that in some business domain, the term policy has multiple meanings: it can mean a regulatory rule or an insurance contract. The exact meaning can be worked out in human-to-human interaction, depending on the context. Software, however, doesn’t cope well with ambiguity, and it can be cumbersome and challenging to model the “policy” entity in code. Ubiquitous language demands a single meaning for each term, so “policy” should be modeled explicitly using the two terms regulatory rule and insurance contract.
