Legal Question in Credit and Debt Law in Michigan

Re: money owed to us but no contract

Generally speaking, there is no rule that requires a contract to be in writing. There is an area of law called the "statute of frauds" which does require written agreements, but it doesn't seem like that would apply to your situation based upon the limited information you gave me.

As such, an action for breach of contract has a statute of limitations of six years, which means you have six years from the breach to sue.

In your case, it would appear that the payments you did receive should provide some written backup to establish the existence of a verbal contract. Hopefully, your record-keeping regarding the arrival/return of the llamas is also good.

Small claims is not a bad bet for you but there are some drawbacks. You typically cannot appeal a judgment from small claims, which means you are stuck with what the Judge decides. They also preclude attys from appearing in small claims. So if you are a business entity you cannot use small claims (because you are only allow to represent yourself, not a company, in a court of law). On the upside, it can usually be faster and cheaper than district court.