Wouldn't it just be [i]hilarious[/i] if their story came to an end here and they all die from the first enemies they meet, all because Liefr failed his first negotiation roll?
No, it'd be shamefully pathetic.

If Leifr dies, make sure to loot him. That's a good quality shield he has, a good horse, and a lot of iL. Lyrisa could probably do something magic with the sword or some such. Fiore could probably pull off the frilly noble tunic look.