After defeating the Legendary Offender champion, Rogdul, he'll tell you to seek out "The Grand Fool", but that only one person knows who he is - Bjorn Skaldbeard.
The player will then receive a Miscellaneous objective to find Bjorn.
Bjorn can be found in the northwest of Winterhold near Pilgrim's Trench.
After speaking to Bjorn, he'll agree to help the player if they dive down and get a figurehead from a ship for him. The player's objective will then point them toward the item.
Once the player reaches it, they can interact with it to remove it and then return it to Bjorn.
Bjorn will then explain that battling The Grand Fool is different than other duels - that only the Fool gets to Insult, and the challenger must defend themselves.
The player will then need to duel Bjorn in this style. If the player wins, Bjorn will reveal that the Grand Fool is Peras - he'll then tell the player he is heading to Winterhold, and the player can challenge him again in the future.
If Bjorn wins, he will stay where he is at for the player to challenge again when they are ready.
Once the player speaks to Peras next, they will have a dialogue option to identify him as "The Grand Fool" and challenge him.
Peras' challenge is similar to what Bjorn demoed for the player, only Peras uses entirely new Insults, and the player must find existing Retorts in their collection that would pair correctly with his as well.
If the player wins, they will be declared the new Grand Fool, and will be rewarded with a new piece of headwear called "Fool's Crown". This has a unique enchantment that causes the player to disarm enemies who block their one-handed sword swings, with a success chance equal to the player's Speechcraft skill.

| Insult | Retort |
|---|---|
| The quips I utter are just as stunning - as the mouth from which they cascade. | What you call "quips", everyone else calls a spluttering tirade. |
| Ugh, you reek of ale! Without a doubt, your every tavern's favorite client! | I'd -never- partake in the volume of drink - to which -you- are so reliant! |
| I beg, do not sing! I can not stand to hear you warble -another- sour note! | I fear you're mistaken, that bleating you heard came from your own throat. |
| So unkempt... Do you always present yourself in a manner so obscene? | Better to learn from a Falmer, then to mimic your grooming routine. |
| Do your puerile performances -always- leave a crowd so sedated? | -Your- jabs are unrefined and juvenile, I won't be so easily baited. |
| Your voice is so grating, to hear it is a painful violation! | In time, hurts mend. Whilst your lack of charm is a more permanent frustration. |
| I can only assume your sheer incompetence - is an experiment in public irritation! | I'm just going easy on you, so I may savor your humiliation! |
| Behold, and be amazed - at the sheer amount of mental acuity that I wield! | Then you're unarmed and defenseless! If I were you, I'd yield! |
| Even the gods would applaud the wit - to which I hold such firm dominion! | The Divines have better taste - than to indulge someone of your foolish opinion. |
| I'm shocked you can even recall your own name, given your abysmal comprehension! | Did you forget? We've been over this already! I question your retention... |
| Watch you perform?! I'd rather -die- than suffer such indignation! | Speak from experience? For you, a dead audience is surely a common situation! |
| I -would- pilfer your insults, but repeating them would have me lose this contest! | Mistaken, stupid, AND a thief. I look forward to your arrest... |
| I've a mind like an old compendium! Yours? Well, that's best left unspoken. | Tattered, worn, pages missing? No wonder your speech is so stuttered and broken! |