contracts are never wrong, as long as YOU make them and you get them back signed.
Take the time to send them through regular mail (the stuff with envelopes and stamps)
Make sure you put things such as payment method, payment due until....., amount, date of completion of the website, and some limitations such as "when the money is not on my account until the .... then I, the webdeisgner Ssurfer of mtschann.com holds all rights to take the website offline", bla bla, just some regular stuff to put in a contract.
Also include in your contract that if the client is to supply you with images, logos content etc... that there is a set date so your deadlines don't become to tight, business ppl get busy and forget.
ANother issue is to be perfectly clear with what you will be providing and if this changes then allow an hourly rate charged for extras and other development.
get it signed too!! most important