What term refers to a defendant's response that denies allegations and sets out affirmative defenses?

The correct term for a defendant's response that denies allegations and sets out affirmative defenses is "Answer." In legal proceedings, an answer is a formal written document submitted by a defendant in response to a complaint. It typically includes the defendant's admissions and denials regarding the allegations made by the plaintiff, as well as any affirmative defenses that the defendant may want to raise. Affirmative defenses are legal defenses that, if established, can defeat the plaintiff’s claim regardless of whether the facts presented in the complaint are true.

The term "pleading" generally refers to any document filed with a court that sets out the parties' claims or defenses, which makes it broader than just the answer. "Response" can refer to a variety of replies within legal proceedings and is not specific to the context of denying allegations and setting out defenses. A "demurrer" is a specific type of pleading that challenges the legal sufficiency of the opposing party's pleading without addressing the facts, which does not fit the definition sought in this question. Thus, an "Answer" is the precise term that captures both the denial of allegations and the establishment of affirmative defenses in the context of defending against a claim.