Minterms and maxterms are fundamental concepts in Boolean algebra used to define functions. Minterms represent the sum of products, where each term is an AND operation of variables that results in the function being true. Conversely, maxterms represent the product of sums, where each term is an OR operation of variables that results in the function being false. The discussion emphasizes that the definitions can be found in the provided material, which includes examples to clarify these concepts. Understanding these definitions is crucial for working with Boolean expressions effectively.