Cloak of fear requires the attacking unit to resist a spell before they can hit their target. Magnar's 137 spell mastery made that quite difficult.

Whole it does list a 97% chance hit, that it the chance to hit versus dodge. It does not take cloak of fear into account.

Cloak of fear is annoying when the AI casts it, but a very effective ability.

N/A

I believe it works how davrovana explained above, meaning the Footman's spell mastery doesn't matter in this context, rather his 46 spell resist. It's the 46 spell resist vs Magnar's 137 spell mastery, meaning it will still be extremely difficult to hit him.

Are you sure? The description says that the attacker must make a spell resistance check. I understand it this way: The attackers spell mastery against the defenders spell resistance. That would make sence.

If it works how you explain (attackers spell resistance versus defenders spell mastery) this would greatly favor a mage because this class has a huge spell mastery AND it can reduce the casting time by -1 (cloak of fear has a casting time of +1). So a mage with high initiative could become invulnerable???

The attacker is the one trying to resist the effect, therefore it is the attacker's spell resistance which is checked against the defender's spell mastery to determine whether or not the attacker can attempt to land a blow. To put it another way, a unit which has Cloak of Fear essentially casts a spell on anyone who attempts to engage them in melee combat; if this spell gets resisted, then the opponent can attack normally.