Terror
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The Terror skill is a special skill that was added as an interesting effect for combat.

It allows you to scare your opponent during combat, there are a variety of effects you can execute in combat from scaring your opponent into paralysis, to dropping a weapon or losing stamina or mana.

To view the abilities that are available check out Library > Spells and look up Terror.

You do not need to learn these spells as long as you have Terror skill they will be available when you get enough skill to use them. However if you run out of terror/fear points in combat you will not be able to use them anymore.

This skill is not a playable class skill but a skill some monster classes gain.

It may also be available to players as a bonus on some items, which will allow you to use it in combat even if you do not know it naturally.

Skill Use
To use the Terror skill initiate a fight with a monster/player and then click the Scare Tactics button on the combat buttons.