I got this quest which doesn't have a proper naming and description.
I think I got it from Mirel about the racism.

Then once I speak to the elven chief's wife about it the game crashes after the following dialogue:

Any way to solve this? 

Thanks in advance. :)

Seems like broken/missing game files. Did you use the update files but skipped one or more updates?
Try to re-download the full game version and move your entire save folder content into the same folder of the new download.
Bugged quests remain in the save file, even when you change the game files, so I hope you have a save before taking that quest.

I am playing on a site and thus let them handle the updates. I'm afraid I don't have a save pre the quest so I guess that is now corrupted and I'll have to start over?

Any way to perhaps abandon the quest (edit save file?) and then try again?

(Thanks for the amazingly quick answer btw. And awesome job on developing this game. It's been alot of fun!)