Offer letter rescinded

I was given a signed offer letter by a large corporation. I signed accepting this position. We had been discussing this position for several weeks. I then gave my resignation letter to my current employer. My first day they stopped me from finishing inprocessing explaining they have discovered, by absolutely no fault of my own, there is a conflict of interest and rescinded the offer letter leaving me unemployed. Do I have any recourse?

1 answer  |  asked Dec 4, 2006 4:42 PM [EST]  |  applies to Arizona

Answers (1)

Francis Fanning
No contract, but perhaps a remedy

When you are offered a position, but the offer is not for a set period of time (such as a one year contract), the presumption is that the job being offered is terminable at will at any time without cause or notice. So in your situation, you have no recourse by way of a claim of breach of contract. However, when someone induces you to act to your detriment by a promise that turns out not to be legally enforceable, you may have a claim for what is called "promissory estoppel." The measure of damages is not the benefit of the offer made to you but the loss you suffered in relying on the promise. In your case this means the loss of the job you quit. I would try to get your old job back. If you cannot, you may want to talk to an attorney about making a claim for lost income using this legal theory.

posted by Francis Fanning  |  Dec 5, 2006 1:18 PM [EST]

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