Do the Indians not know how to honour their contracts?

This blog in my quest to know why there is so much disharmony wherever Indians are there as managers.

The better practice of the olden times Feudalistic System in Europe was the 'Laws of Contract' which in the modern democracies became the reconciling mechanism between personal liberties of an individual and his business organizations, and even between a citizen and the governments. However the law of Contracts forbids certain kinds as the 'ab initio void' which attempt to reign in the person's natural, human and fundamental, rights. Contracts are based on the principal of reciprocity and equality. Business Organisations and the Governments are expected to act in a manner so as not to reduce the bargaining power of the citizen or individual or any party in a contract which may further affect Equality in a Contract. 
The above knowledge is expected to be held commonly by all people and thus is a part of the Common Law.

In the days of Feudal systems and before, the public governance worked under a general belief of the Divine Authority of the King, the King as God himself, or a shadow of God on earth. It thus drew from the people - respect absolute, discipline-obedience unquestioned , and ignorance of laws, science which may raise any enquiring thought in any person.
Most of the Indian systems even today draw authority over people from these ideas. Indian Education System also suffers from defect of similar nature. Teachers are expected to be respected beyond natural humanity and reciprocity of students as humans, disciplinary obeyed, and not be subjected to enquiries and questioning. Contracts require mutual respect, discipline from everybody for everyone's safety and security, and well-informed and conscious people.