The document defines a saddle point as a point on a curved surface where the curvatures in two perpendicular planes have opposite signs. It provides two definitions: 1) a point on a curved surface with this property, and 2) a value of a function of two variables that is a maximum with respect to one variable and a minimum with respect to the other. Saddle points are used in industry for optimization and decision making, and in game theory they represent the best strategy for both players. The instructions explain how to detect saddle points in a matrix by finding elements that are the highest in their row and the lowest in their column.