* You recognize that you were wrong.
* You are willing to accept the correction.
* You are not offended by the correction.
It's a way to gracefully admit a mistake without getting defensive.
Here are some examples of how it might be used:
* Person A: "I thought the capital of Australia was Sydney."
* Person B: "Actually, it's Canberra."
* Person A: "Oh, you're right! If you stand corrected."
* Person A: "I'm sure the meeting is tomorrow."
* Person B: "No, it's actually next week."
* Person A: "Oops, my bad. If you stand corrected."