Who screwed who?

[d000hg]

Looks like it went t|tts up due to a lack of paperwork / contract.

And what difference do you think contract would've made?

[vadhert]

And what difference do you think contract would've made?

A contract between the two parties underlying what is expected from the supplier by the end client.

At its very least it is a reference point between the two parties.

[Safe Collections]

1.) I don't want to pay him that final bill does he have grounds to chase me for it?

2.) Do I have grounds to chase him for the loss he has caused me?

3.) Have I broken some unspoken rule about talking to subcontractors (even though we don't have a contract)

1) Yes. But practically speaking it will be very difficult given the lack of paperwork and cross border issues.
2) See 1.
3) No, but some people do get funny about it.

In all honesty your best course of action is to learn from what went on and carry it forward in your business so you don't make the same mistakes again.

A contract wont help you as far as any potential claim goes (as the amount in question would likely not be large enough to consider litigation) but it would ensure that everyone was clear as to what was expected and when it is to be delivered. You might want to have a look at these contract samples on Crunch