Unlike contracts, reputation is an effective system

I have contracts for certain things. Mostly things I hate. For example, the cable company, credit cards, and the licensed geotechnical engineer that the city made me hire in building my house. I don’t know if the cable company or the credit card issuers have violated their end of the agreement we have because I don’t remember what the fine print is and it would take a lawyer to know every loophole possible. It probably has a clause in there saying they can change it at any time anyways. As for the geotechnical engineer, he did a poor job the first time around and we had to redesign, which I had to pay him and others for. But I can’t sue for breach of contract because I need his buyoff with the city to finish the design and construction. I also know plenty of people who were owed money in a contract and didn't get paid because the other party went bankrupt, which especially common for corporations. These contracts are useless to me.

Even if I wanted to use contracts more often they’re too cumbersome. To make agreements I’d have to pay a lawyer to write them. Also, only a court could pass a judgment if they breach their contract, which I gather is usually months or years backlogged and isn't worth it for minor breaches. Even then, I’d probably have to pay another 3rd party to actually physically enforce it since that's not what cops seem to do unless they have some other personal interest. It just doesn't work very well.

Now reputation, that’s something I use every day for both little and big things. I read reviews of products before I buy them and write reviews after I do. I ask my friends for referrals on who will build my house and that's turned out excellently. I make deals with people at work about dates when I'll deliver things and I deliver them even when I know I could weasel my way out of having to do so, because I want to maintain a good reputation. Even the corporations don't often take people to court on their contracts, they just dock non-payers reputation in the credit-scores they have. All of these things rest on reputation.

At this point, it seems like a contract is only valuable in enumerating the position of two parties that are being honest already. It doesn't protect me from crooks. It doesn't protect me from the unexpected. If I could just have a reputation system on everyone and everything I’d stop using contracts entirely.