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This is a quest given by the Guild Master in towns. The Guild Master's faction has to be at war for this quest to be available.

You will be asked to stop the war between the Guild Master's faction and another faction within 30 days.

To complete this quest, you must convince the named lords from both warring factions to accept a peace treaty. This can be achieved either through bribery (with the possibility of using persuasion to affect the price), using your good relation with the lord to force them to accept, or by capturing them. Capturing a lord is very difficult, as they will usually escape when defeated. Bribery is guaranteed success, which costs 7000 for the initial lord, and 1500 for the latter one. The one you speak to first seems to be the one who requires the higher sum. Keep in mind that if bribery is used, the reward money does not increase to make up for your expenses.

The reward for completing this quest is quite a bit higher than any of the other quests: 4000 experience and 12,000 denars, a +5 improvement in your relation with the town, and a small increase in renown. If you choose to decline the reward, you will receive +3 additional relation instead.

This quest requires 100 days to pass before it can become available again.

Transcript[]

This war between (faction #1) and (faction #2) has brought our town to the verge of ruin. Our caravans get raided before they can reach their destination. Our merchants are afraid to leave the safety of the town walls. And as if those aren't enough, the taxes to maintain the war take away the last bits of our savings. If peace does not come soon, we can not hold on for much longer.

You are right. But who can stop this madness called war?
There have been attempts to reconcile the two sides and reach a settlement. However, there are powerful lords on both sides whose interests lie in continuing the war. These men urge all others not to heed to the word of sensible men, but to keep fighting. While these leaders remain influential, no peace settlement can be reached.
Who are these warmongers who block the way of peace? (Same Result)
Who are these lords you speak of? (Same Result)
They are (Lord #1) from (faction #1) and (Lord #2) from (faction #2). Until they change their mind or lose their influence, there will be no chance of having peace between the two sides.
What can be done about this? (Same Result)
Alas, it seems nothing can be done about it. (Same Result)
There is a way to resolve the issue. A particularly determined person can perhaps persuade one or both of these lords to accept making peace. And even if that fails, it can be possible to see that these lords are defeated by force and taken prisoner. If they are captive, they will lose their influence and they can no longer oppose a settlement... What do you think? Can you do it?
It seems difficult. But I will try. (Same Result)
If the price is right. I may. (Same Result)
Forget it. This is not my problem. (Same Result)
Most of the merchants in the town will gladly open up their purses to support such a plan. I think we can collect 12000 denars between ourselves. We will be happy to reward you with that sum, if you can work this out. Convince (Lord #1) and (Lord #2) to accept a peace settlement, and if either of them proves too stubborn, make sure he falls captive and can not be ransomed until a peace deal is settled.
All right. I will do my best.
Sorry. I can not do this
Don't say no right away. Think about this for some time. If there is a man who can manage to do this, it is you.
It is your duty to help the nobles in their war effort. You shouldn't complain about it.
Hah. The nobles fight their wars for their greed and their dreams of glory. And it is poor honest folk like us who have to bear the real burden. But you obviously don't want to hear about it.

Convincing the Lord[]

Eh? I'm not sure I heard you right, {playername}. War is not easily forgotten by either side of the conflict, and I have a very long memory. Why should I take any interest in brokering peace with those dogs?

Perhaps I can talk you into it...

I still don't see why I should accept what you're asking of me.

Bribery[]

Then I'll make it worth your while. (7000/1500 denars)

Mmm, a generous gift to my coffers would certainly help matters... 7000/1500 denars should do it. If you agree, then I'll go with your suggestion.

I'm afraid my finances will not allow for such a gift. (If not enough money)

Ah. In that case, there is little I can do, unless you have some further argument to make.

Very well, please accept these 7000/1500 denars as a token of my gratitude.

My dear {playername}, your generous gift has led me to reconsider what you ask, and I have come to appreciate the wisdom of your proposal.

Let me think about this some more.

Favor[]

Please, do it for the sake of our friendship. (- relation)

You've done well by me in the past, {playername}, and for that I will go along with your request, but know that I do not like you using our relationship this way. (If enough relation)

I don't think I owe you such a favor {playername}. I see no reason to accept this for you. (If neutral/friendly but not enough relation)

Is this a joke? You've some nerve asking me for favours, {playername}, and let me assure you you'll get none. (If unfriendly)

I am sorry, my friend, but I need your help in this.

All right then, {playername}, I will accept this for your sake. But remember, you owe me for this.

If it will not please you, then I'll try something else.

Persuasion[]

Let me try and convince you. (Persuasion)

Very well. Make your case.

By God's grace, {playername}! Haven't we talked enough already? I am tired of listening to you, and I do not want to hear any more of it right now. (If reached persuasion limit)

[Attempt to persuade]

All right, all right. You have persuaded me to it. I'll go ahead with what you suggest. (If fully convinced by persuasion)

You've a point, {playername}, I'll admit that much. However I am not yet convinced I should do as you bid. (If you make a strong argument)

Enough, {playername}. You've a lot of arguments, but I find none of them truly convincing. I stand by what I said before. (If you make a neutral argument)

Truthfully, {playername}, I fail to see the virtue of your reasoning. What you ask for makes even less sense now than it did before. (If you make a bad argument)

Wait, perhaps there is another way to convince you.

Never mind, peace can wait for now. (exits the dialog)

When the Lord is fully convinced[]

You... have convinced me, {playername}. Very well then, you've my blessing to bring a peace offer to {other faction}. I cannot guarantee they will accept it, but on the off-chance they do, I will stand by it.