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The Elder Scrolls V: Skyrim Hints
Give the Rueful Axe to Clavicus Vile OR Kill Barbas with the Rueful Axe.
1 of 3: If you tell Vile "no deal" during the conversation, you'll automatically give him the axe and spare Barbas. If you say that you'd like to keep the axe, you'll get to make your choice after the conversation is over.
2 of 3: If you want to keep the axe (which has a "does 20 points of stamina damage" enchantment on it), equip it and attack Barbas to kill him. That'll get you the "Speak to Clavicus Vile" objective.
3 of 3: If you'd rather have the heavy armor helmet called Masque of Clavicus Vile (prices are 20% better, +10 Speechcraft, Magicka regenerates 5% faster), activate the shrine again and tell Vile it's no deal, then wait until the quest ends.
