I am sorry-you are right - Hearsay testimony is secondhand evidence; it is not what the witness knows personally, but what someone else told him or her. Scuttlebutt is an example of hearsay. In general, hearsay may not be admitted in evidence. Unless it is the UN court-which allows it!
There is another term for "he said/she said" type of evidence when no witnesses oher than the two who had the conversation are present.