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I was in a class of relative clauses and, out of context and in order to give an example, I said:
I know a man that he lives in London.
However my teacher said that using the 'that he' pronouns is wrong and they should be replaced by 'who'. Is that correct? Why? I found later that the 'that' pronoun could be used either with people or objects so now I can't understand what's wrong.
Your teacher is right that "that he" is incorrect. It's incorrect because "that" is the subject of the relative clause, but so is "he", and there cannot be two subjects, so "he" is wrong.
These are the two correct options:
I know a man that lives in London.
I know a man who lives in London.
"Who" is usually preferred for people, but it's not a grammar rule.
