Need an opinion on my current situation.
Back to January 2021,I applied for an internship at Company A. I got the position and they gave me contract stating that I have to accept a full time position with the company 'when offered during the internship or upon the completion of the internship'. This contract is only effective until 30th June 2021
Throughout the internship, the company have been hinting about a full time position but never really offered me one officially. 30th June 2021 was my last day and yet I didn't get an official offer yet.
So I applied to Company B in August. while I was waiting for response from Company B, Company A got in touch through a phone call (also in August) asking if I am interested to work for Company A (since I didn't have an option then, I said yes), However, they didn't make this official yet,they haven't ask me to sign a new contract or discuss the employment terms etc.
As time passes by, Company B which I applied to got back to me and offered me the position I was applying for. I really feel that Company B is a good fit for me as the position is more related to my skills and interest, they also offered me a higher pay and more benefits+stability as Company B is bigger and more stable.
However, I feel guilty to break the news to Company A as I have signed the initial contract (although it has expired) and gave my word to Company A that I was interested (although through phone call)
So I am wondering if it is bad for me to reject the offer from Company A when they finally gave me an official offer? Or am I obliged to accept their offer as the overdue contract I signed back then said I should accept their offer? Is it possible for me to go to Company B? If yes, what should I do to Company A?
UPDATE: Thank you all for your responses and encouragement. I have decided to work for Company B and will clarify my decision with Company A. Once again, thank you!