How To: Delete a Contacts Folder in OWA
A common question asked is "how do I delete a Contacts folder I have created, in OWA?"
Here is how to do it:
This screenshot is of your folder you wish to delete, for this example, it is called New Contacts Folder.

Now click back to the main OWA page by clicking the Mail tab and do a refresh of the page by either pressing F5 or the refresh button on your browser.
You will now see a "plus" sign next to your Contacts folder.

Expand the "plus" to see the New Contacts Folder.

Now right click on New Contacts Folder and select delete.

And that's it!