Evidence is presented showing that contracts may not be an essential ingredient of channel relationships in logistics. By examining formal (contractual) and informal relationships in the distribution of hi-fi speakers, the importance of such attitudinal factors as a long-term perspective on the relationship and expectation of future business are evaluated. The success of channel relationships is measured with 3 separate variables: 1. quality of relationship, 2. effectiveness of relationship, and 3. channel policy integration. The advantages of maintaining informal channel relationship are also reviewed. Results suggest that the quality and effectiveness of channel relationships are not related to the presence of a formal contract. In addition, a long-term perspective on the relationship and an expectation of future business are significantly related to the quality, effectiveness, and level of policy integration between participants in the relationship.