Answered Essay: You are the owner of a start up company seeking to hire a chief financial officer. After conducting

You are the owner of a start up company seeking to hire a chief financial officer. After conducting intensive interviews, You decide to make an offer to Tommy Techy and Tommy accepts the offer. After you have made the offer and Tommy has accepted, you try to get insurance bonding on him. (The bonding is insurance to protect you in case the CFO would steal or embezzle money, since the CFO has such control over the finances of the business.) As the insurance company does the required background check for the bonding, they find that Tommy has a criminal conviction for a felony and is not eligible to be bonded. You are shocked because during the interview, Tommy indicated that he had nothing in his past that would prevent a company from getting an insurance bond for his performance. Do you have a binding contract with the candidate? Why or why not?

Expert Answer

Answer

No! I do not have binding contract with the candidate because, hiring a regular employee is always subject to the verification of the candidates background which goes through the process called back ground verification check (popularly known as BGV checks) Especially, when the owner of the company hires a Chief Financial Officer, all the terms and conditions that are subject to verification of the back ground records will be mentioned in the offer letter. Mere offer letter or acceptance of the offer letter doesn’t bound to be the full appointment of the candidature. Hence, if the back ground verification checks prove that the candidate is convicted due to the criminal offence, his offer letter will be void and an action can be taken against the candidate and the offer letter can be rejected.

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