Peer Correction is a method of error correction where other students in the class to correct mistakes rather than having the teacher correct everything.

It is useful in that it means involving the whole class in the moment and it also allows the teacher to check what the rest of the class knows. If, for example, it becomes evident that no one in the class really knows where the problem lies then the teacher can take appropriate steps to explain it to everyone.

This article looks at the uses and pitfalls of peer correction in the EFL classroom: http://icalweb.com/wiki/index.php?title=Peer_Correction