Protect yourself! Contracts and you!

So someone came to you and says, "I r can has interwebs site made?" To which you facepalm yourself and say, "Why yes sir or madam, I can make you a website, I'll just need some information first.  After finding out about the website and what content they want in it, you say to them, "Ok, this looks well within my capabilities, now lets talk time and money." They babble out what they think is a fair price, you correct them and inform them about how much work goes into building a website, and tell them the correct and truly fair price. After they mull it over, all the while making a face much like a chimpanzee, they agree to pay the price, but only after the work is done. WARNING... WARNING... Do NOT agree to this. Let your potential client know that you can not agree to those terms, however you are willing to write up a contract outlining not only cost, but a timeline in which phases of the project will be done and submitted to them for approval. If the client says something along the lines of, "We don't need a contract, trust me." or, "I can pays part now, then part later, with no contract yes?" Either insist on the contract or leave then and there. If a client does not want a contract in any form, odds are they have no intention of truly paying you or paying you what they think is "fair." Having a contract in place is a way to ensure not only that you get paid what you know you want and think is fair, but it'll make the client then legally obligated to the payment signed for. Also make sure to include a section regarding if the company decides to nix the deal, or fires whomever you're working with, that you'll still get paid. Contracts may seem like a big deal, but it is strictly to protect you the designer, and can also be an amazing way to educate the client about what is actually involved with making a website, logo, taking photos, filming something, whatever it is you may be doing for them.