Walkthrough

Contract: Dragon is a Side Quest in Skellige with a suggested of level 28.
This quest can be picked up from the Fyresdal noticeboard. After picking up the quest, talk to the village elder to get more information on the "dragon" and also increase your reward.

After talking to the village elder, talk to the victim's mother, and then examine the nearby dead bodies. After examining the bodies, Geralt finds it curious that there is no fire damage on the bodies.

Head out towards the site of the attack, and use witcher senses and investigate a dead cow, then investigate the nearby cows blood stain, then follow the trail of cows blood. You'll eventually come across a dead dog, that was dropped from high up. Geralt will see the nearby forktail's nest. Head back to the village elder to get some bait for the "dragon".

After talking with the village elder, he will give you a sheep to use as bait. Act like a sheep dog, and get the sheep towards the location of the forktail nest. Once you get the sheep close enough, the Forktail/Dragon will attack.

After dealing with the monster, loot the corpse and return to the village elder. Be sure to tell him that it was indeed a dragon, otherwise you will only get half the reward.