What is a deadlock?

How many times have you faced a deadlock like this?

According to wikipedia, a deadlock is a situation where in two or more competing actions are each waiting for the other to finish, and thus neither ever does. It is often seen in a paradox like the "chicken or the egg". The concept of a Catch-22 is similar.

Or, if you prefer a visual explanation, this is a deadlock:

Deadlock