Exact differential equations are a special type of first-order differential equations that can be expressed in the form M(x, y)dx + N(x, y)dy = 0, where the partial derivative of M with respect to y is equal to the partial derivative of N with respect to x. This property means that the equation has an associated potential function, allowing for solutions to be found through integration. Understanding exact differential equations is crucial for solving problems where relationships between variables can be expressed in terms of their derivatives.