The Tale of Captain Brage

You can find Captain Brage in the area south of the lighthouse, along the coast. He is towards the southeast, near an overturned wagon. He will ask you to solve a riddle. If you answer his riddle correctly, he will come with you and you can resolve the quest peacefully. If you answer incorrectly, you will have to fight him. In either case, you get his cursed sword. If you choose to kill him, you must bring his body back to Nashkel to get your reward, and his body is quite heavy.

The answer to his riddle is "Death."