Uh, ok, so I'm a bit late with this, but I would like to put in some solid advice for the Mantle of Trademeet quest. I would advise that you initially side with the man (Alibakkar I think) because, SPOILER below:
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After you have started this quest off the mayor will approach you and ask you to give him the Mantle. Do this, then go into the blokes house and attack him with all of your people, then kill off his gaurds (works best if you pick pocket all of them first, so they have no weapons
) and collect the Items from his corpse. Amongst these items should be some money and a suit of Elven Armour which is INCREDIBLY usedful for any mage (including NPCs) as it has an AC of 4 (i think) and allows the character to use bracers or gloves to make then stronger or better at combat.
Well, that's my advice anyway, but it's your choice
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Nicodemus Deathslayer, Paladin and Undead Hunter of the Order of the Holy Flame