You learned to mindread at the very start of the game, in Farglow. You don't need any additional levels of that skill, or anything, just start a conversation and mindread (hit X in the Xbox version; not sure about on the PC).
Just to clarify, mindreading will let you find the book that will open the false wall to reveal a room with a couple chests. The key for the chest with the soul forge contract is carried by a creature up one level from there, so you have to take the elevator up, and then return to open the chest.
