This becomes really apparent if you live in a country with a less-capable legal system. Contracts are basically meaningless. It's the people behind the contracts - and their character - that are more important. That is why if you try to do business in a place like China or Brazil, the hosts will take you out to dinner and events to get to know you first before talking business.

This is even true in North America although you don't need to spend as much time getting to know someone as you have a little more safety.