Economics

Alex is a recent graduate of the University of Adelaide Business School and is very keen to get a job as a graduate accountant. On 1 September 2022 he sends a text message to Mae who has her own accounting firm. The text from Alex states:

I am looking for a job as a graduate accountant. I have attached my CV (curriculum vitae) to this text. How much can I expect to earn?

Mae relies by text on the same day:

Your prospects look very good. I would pay you more than $40,000 per year as a starting salary.

Alex is excited and responds by text immediately:

That's great, I accept the position!!

Mae also responds by text immediately:

Would you like a job as a graduate accountant for $45,000 per year? I only have one position. I will give you 2 days to think about it.

There is no response from Alex. It is still 1 September. So Alex goes away and think about the job.

The next day, on 2 September, Mae meets another graduate named Betty. Mae is so impressed with Betty that she offers a job to Betty as a graduate accountant on the spot and Betty accepts. They enter into a legally binding contract of employment on that day under which Betty will be employed as a "graduate accountant" and receive "$50,000 per year" for working a "40-hour week".

The next day, on 3 September, Alex posts a letter to Mae stating he will accept the position for $45,000 per year. The letter is received by Mae on 5 September.

On 4 September, Mae sends a text to Alex stating:

I'm sorry Alex, I have given the job to someone else. Good luck finding another position.

Alex is furious as he believes he posted his letter within the time he was told he could think about the job.

QUESTION 1: Does Alex have a legally binding contract of employment with Mae for a graduate accountant position paying $45,000 per year?

Meanwhile, Betty commences her new position with the terms of the contract stating her position as a "graduate accountant" at a "starting salary of $50,000 per year" for working a "40-hour week".

For the first 3 months of her new job, Betty is given very simple jobs such as photocopying annual accounts, filing documents for the other accountants and printing out forms for the other accountants. Betty must also collect the mail and arrange for paying the bills and expenses of the business. And she is working very long hours, over 50 hours per week, as it is tax return time.

So Betty looks at her pay slips for the first 3 months and she is very disappointed to see that she is receiving only $30,000 per year. Betty immediately complains to Mae. But Mae tells Betty that the "Office Manager" had left his position suddenly and so Mae had to give Betty that job instead "and the hours go with the job". Betty is furious.

QUESTION 2: Can Betty terminate her contract of employment with Mae and claim damages (compensation) from Mae for the unpaid wages?

(Note: In this question 2, you can assume Betty has a legally binding contract of employment with Mae with the terms of the contract stating her position as a "graduate accountant" at a "starting salary of $50,000 per year" for working a "40-hour week"