Can I legally back out of a signed offer letter?

[ima_be_thatguy]

Ive recently started job hunting, and recieved a good offer from a company while still interviewing at a second company, nothing was certain at the second company, the first company sent an offer letter and required an answer within two business days, I signed the offer letter, no contract yet though. The second company, finally came through and they are about to make me an offer.

What I want to know is, If I prefer offer number 2, can i legally back out of the first offer?

 

[Deadmanza]

Ive recently started job hunting, and recieved a good offer from a company while still interviewing at a second company, nothing was certain at the second company, the first company sent an offer letter and required an answer within two business days, I signed the offer letter, no contract yet though. The second company, finally came through and they are about to make me an offer.

What I want to know is, If I prefer offer number 2, can i legally back out of the first offer?

Not without repercussions, if the first company decides to pursue legal action. Same way if you signed the letter, declined offer 2 and the company decided to not take you on, you could take legal action.

 

[Priapus]

Ive recently started job hunting, and recieved a good offer from a company while still interviewing at a second company, nothing was certain at the second company, the first company sent an offer letter and required an answer within two business days, I signed the offer letter, no contract yet though. The second company, finally came through and they are about to make me an offer.

What I want to know is, If I prefer offer number 2, can i legally back out of the first offer?

Wait until that actually happens. Then decide if the legal risks are worth it. Chances are, they aren't.

 

[Cicero]

Pfft, not many companies will hold you to a signed offer letter and take legal action should you back out.

If you're keen on offer 2, just call company 1 and say you're not interested anymore. 99% of the time they'll just let you walk away. Then accept offer 2.

 

[savage]

If company 2's offer is better, simply go and talk to company 1... Chances are, they will try to match company 2's offer, or, they will just thank you for your time and let you be off on your merry little way.

There's no point in talking on an employee that will be unhappy from day 1.

 

[cguy]

Ive recently started job hunting, and recieved a good offer from a company while still interviewing at a second company, nothing was certain at the second company, the first company sent an offer letter and required an answer within two business days, I signed the offer letter, no contract yet though. The second company, finally came through and they are about to make me an offer.

What I want to know is, If I prefer offer number 2, can i legally back out of the first offer?

I'm not that familiar with SA law, but I expect similar principles apply. In the US, the wronged party can generally sue for damages/costs incurred by the contract breakage. Usually these are so small there are generally no repurcussions. Suing someone the get them to work for you (as opposed to just costs) doesn't usually help anyone. It also doesn't do much for the company's reputation.

It's not really a symmetric relationship, since if you give up your job, and they break the contract, you have a much more legitimate claim to damages.

TL;DR it probably won't matter if you choose not to work for them. You can get sued, but it is unlikely. I'm not a lawyer.

 

[SauRoNZA]

There's no point in talking on an employee that will be unhappy from day 1.

And that's ultimately the part that really matters.

 

[ima_be_thatguy]

Sure, but is an offer letter a contract? The way i see it, its an intent from both parties, party A saying this is what we'll pay you if you agree to come work for us, and me, saying I accept these terms to come work for you. They have yet to send me an official contract.
This is just my opinion, not a lawyer either.

 

[Pavan]

An offer letter is not a contract. You're not legally bound in any way. My 2c.