What are the legal ramifications for a business if we offered an individual a job, they excepted, but now we want to rescind the job offer?

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What are the legal ramifications for a business if we offered an individual a job, they excepted, but now we want to rescind the job offer?

Asked on August 25, 2011 California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You could be obligated on the offer. First, depending on exactly what was said, how, it could be that the offer and the acceptance thereof would be held to have created an employment contract. Second, if the candidate was employed at the time or lived distantly, and either quit his/her job or relocated, in reliance upon your job offer, and it was reasonable under the circumstances to rely on that promise, and also you knew or should have known that he or she would take some steps otherwise to his or her detriment in reliance on your offer (like putting in notice at a job), that may be enough to "estop" (or "stop") you from disclaiming or denying the job offer under the theory of promissory estopped. You should consult with an employment lawyer to confirm your potential exposure or liability.


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