Regardless of whether you're a freelancer, contractor, or consultant please do yourself a favour and have a lawyer created contract together. If you don't have a rock solid contract you're leaving money on the table, and making yourself extremely vulnerable.
I think that this is a highly Angst-driven approach - I used to feel the same, but I decided that I have to put more trust in people not trying to screw me. Of course, your BS radar has to be finely tuned to not engage with potential troublemakers.
I felt the same way as you. Then we had a client that refused to pay us a month and a half of payroll. Changes the tune of things. The quote for me from the video that solidified this was: 'when you hire a lawyer [to handle contracts] you switch from being a design amateur to a design professional'. Applies equally to programmers.
Having a solid contract doesn't mean that you can't trust people. They just make everything legally binding so that if trust deteriorates (and it will if you do this long enough) that you'll be covered.
Also don't let the title of the video deter you, it's a (mostly) tongue-in-cheek title.
Also highly relevant - Fuck you, pay me: http://vimeo.com/22053820?utm_source=swissmiss