I was curious if it was safe to drop books, scrolls, and contracts once I have read them?

You can sell scrolls and books, and the person who originates a contract will take it back when you fulfill it.

But yes, you can drop them if you wish.

Or you can store them for free in the taverns. The storage areas in the taverns are linked, so the stuff you store in one tavern is accessible in all of them.

Selling books and scrolls is the best way. You can get some decent cash back this way. For some reason it doesn't work in the last act (for me at least).

Thanks for all the help. Is there any place in the Temple Quarters of Vizimia that allows you to sell books and scrolls?

There should be a Dwarf Antiquarian near Shani's place, along with a Herbalist and a Peddler.

http://witcher.wikia.com/wiki/Merchant_Street#The_Antiquary

Also most blacksmiths (probably the only exception being the dwarf blacksmith from the second act) will buy almost everything from you if you select the option to reforge your sword. As far as I know that's the only way to sell your old armour.