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Lawrence has good instincts and decent skills but he is WAY too reckless if you ask me. He got himself in trouble by going too far and making an enemy out of the merchant. If you play your cards right you can make a decent profit AND give your former adversary a chance to save face. Here was one way he could have handled this:
(1) Ask for armor as collateral. If Lawrence can't find a buyer he can return the armor and get ~1200 silver pieces back.
(2) Sell him an option - the right to all profits from the deal (after expenses) for 250 silver. The option is only good if Lawrence makes a profit.
(3) Negotiate insurance - Lawrence pays 50 for insurance. If Lawrence is robbed he can still get the 1200 silver pieces with a deductable of 100 silver pieces; i.e. Lawrence gets 1100 back. The option is negated in this case.
So here is what happens in each case:
A. Lawrence gets robbed - Lawrence gets 1050 while the merchant loses the money and the armor.
B. Lawrence cannot sell the armor for a profit - Lawrence gets 1200 back while the merchant gets the armor back.
C. Lawrence sells the armor for a profit - Lawrence gets 1200 plus the 250 for the option minus 50 for the insurance (1400 total). The merchant gets the entire share of the profits.
So even under a terrible scenario Lawrence lives to fight another day, while if he can sell the armor for profit he gets 1400. Even better if he makes a killing, since that allows his former adversary to make a tidy profit as well - a perfect win-win situation in which he would make an ally out of an adversary.
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