Legacy Contracts
In short, a legacy contract is a contract that is no longer in use or supported by the company. These contracts may be with customers, suppliers, or other business partners. Typically, companies will move to terminate these contracts when they are no longer beneficial to the company or when the company wants to transition to a new product or service. However, sometimes companies are unable to terminate these contracts due to legal or financial obligations. In these cases, the company may decide to keep the contract “on the books” but inactive.