Simple answer: because that's the way English works.

I am     -> I'm      ||  I have     -> I've
You are  -> You're   ||  You have   -> You've
He is    -> He's     ||  He has     -> He's
She is   -> She's    ||  She has    -> She's
It is    -> It's     ||  It has     -> It's
We are   -> We're    ||  We have    -> We've
They are -> They're  ||  They have  -> They've

There is a certain amount of ambiguitity here, but the precise meaning can usually be determined by context. You'll notice that the same ambiguity exists with he and it is/has.

Furthermore, it's (it is / it has) can also be confused with the possessive its (note no apostrophe)!

There are no contractions (that I'm aware of) for was (the past tense). She was is always She was, but She had can be contracted to She'd.

Answer from Mike Harris on Stack Exchange
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San Jose State University
sjsu.edu › writingcenter › docs › handouts › Contractions.pdf pdf
San José State University Writing Center www.sjsu.edu/writingcenter
she’s  she is; she has · you’re  you are · shouldn’t  should not · you’ve  you have · that’s  that is; that has · One contraction that is not on the above list is “it’s.” It is useful to note that “it’s,” a contraction, is often confused with “its,” ...
People also ask

What is the difference between an abbreviation and a contraction?
Abbreviations and contractions are both used to shorten a word, but in different ways. · An abbreviation is formed using the initial letters (or sometimes other parts) of a longer word or phrase to represent the whole. Common examples include “Mr.” for “Mister,” “Dr.” for “Doctor,” and “NASA” for “National Aeronautics and Space Administration.” They are used in formal writing as well as everyday conversations. · A contraction, on the other hand, is formed by combining two words and omitting one or more letters. The deleted letters are replaced with an apostrophe (e.g., “cannot” becomes “can’t”
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scribbr.com
scribbr.com › home › contractions (grammar) | definition & examples
Contractions (Grammar) | Definition & Examples
What are contractions?
Contractions are two or more words that are combined and shortened to save time. Typically, you can identify a contraction by the apostrophe, as with isn’t or they’ve—but don’t confuse contractions with possessive nouns, which also use apostrophes.
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grammarly.com
grammarly.com › blog › grammar › contractions
What Are Contractions in Writing? Definition and Examples | Grammarly
What are contractions (words)?
Contractions are short words that are made by combining two words. This is often done by deleting certain letters and replacing them with an apostrophe (e.g., “do not” becomes “don’t”). · Although contractions are common in everyday speech, they should generally be avoided in formal or academic writing. However, there are exceptions (e.g., when writing dialogue in a story or directly quoting an author who uses contractions in your paper). · A good rule of thumb is to consider your audience and the intended effect of your writing when deciding whether to use contractions.
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scribbr.com
scribbr.com › home › contractions (grammar) | definition & examples
Contractions (Grammar) | Definition & Examples
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WordReference
forum.wordreference.com › english only › english only
She's [contraction 'she is' vs 'she was'] | WordReference Forums
November 29, 2016 - "he's" "she's" "they're" etc are only abbreviations of "he is or was", "she is or was", "they are or were. etc. He also added that in the english language there are many abbreviations for words that mean the same thing, but in a different context. So in She's admitted by Stanford University when she was 19, the "she's" of the sentence is abbreviation of "She was", not "She is."
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University of Nevada, Reno
unr.edu › university › writing & speaking center › writing & speaking resources › contractions
Contractions | University Writing & Speaking Center | University of Nevada, Reno
Contractions that take out the first letter of the second word: I’m = I am · They’re = They are · I’d = I had · She’s = She is · How’s = How is · Contractions that take out the second letter of the second word: Note: Contractions that use the word “not” will replace the “o” with an apostrophe (‘).
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Langeek
langeek.co › home › grammar › punctuation and spelling › contractions
"Contractions" in English Grammar | LanGeek
2 weeks ago - Is she Sarah? → ✔No, she isn't. ✔No, she's not. Contractions are used to make informal texts and conversations.
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Grammarly
grammarly.com › blog › grammar › contractions
What Are Contractions in Writing? Definition and Examples | Grammarly
August 10, 2022 - Contractions are a kind of abbreviation that combines two or more words by removing certain letters and usually adding an apostrophe. Only certain words can be contracted: typically small and common words (not, is/are), especially pronouns (I, he/she/it, they), and modal verbs (can, will, might, must, should, would, could).
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Scribbr
scribbr.com › home › contractions (grammar) | definition & examples
Contractions (Grammar) | Definition & Examples
May 2, 2025 - She specializes in writing about research methods and research bias. ... Ads help us keep our tools free for everyone. Scribbr customers enjoy an ad-free experience! An apostrophe followed by an "s" may indicate possession (e.g., "Dave's house") or contraction (e.g., "Dave's here" = "Dave is here").
Find elsewhere
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Enchanted Learning
enchantedlearning.com › grammar › contractions › index.shtml
Contractions - Enchanted Learning
March 9, 2006 - A multiple choice comprehension printable quiz about Contractions for early readers. Words: I’ll, we’re, you’d, don’t, isn’t, it’s, you’re, she’d, they’re, won’t.
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LanguageTool
languagetool.org › home › contractions: what they are and how to form them
Contractions: What They Are and How To Form Them
July 29, 2025 - Is is used for third-person singular subjects. It’s contracted by replacing the “i” with an apostrophe. She called to inform us that she’s going to be late.
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University of Sussex
sussex.ac.uk › informatics › punctuation › apostrophe › contractions
Contractions : The Apostrophe
But I advise you not to use the more colloquial contractions like she'd've in your formal writing: these things, while perfectly normal in speech, are a little too informal for careful writing. Such contractions represent the most useful job the apostrophe does for us, since, without it, we would have no way of expressing in writing the difference between she'll and shell, he'll and hell, can't and cant, I'll and ill, we're and were, she'd and shed, we'll and well, and perhaps a few others.
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Study.com
study.com › courses › english courses › study.com act study guide and test prep
Contractions in Grammar | Overview, Definition & Examples - Lesson | Study.com
April 30, 2016 - The contraction for "I am" is "I'm," as in "I'm going to the store." The contraction for "she is" is "she's," as in "She's my friend."
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Learn English
learnenglish.ecenglish.com › lessons › contractions
Contractions | Learn English
We make contractions by connecting two or more words together. One or more letters are removed from the words when they are connected. ... There would → There'd → "There'd have been more people here if the party had been on the weekend." That had → That'd → "That'd better be the last time she ...
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Twinkl
twinkl.ca › teaching-wiki › contracted-form
What is a contraction in English? - Definition and Examples
Twinkl's Teaching Wiki gives explanations of common terms and key vocabulary used in teaching, and shows related Twinkl resources for each term.
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Collins Dictionary
collinsdictionary.com › dictionary › english › shes
SHE'S definition and meaning | Collins English Dictionary
She's is a spoken form of 'she has', especially when 'has' is an auxiliary verb. She's been married for seven years and has two daughters. ... USAGE See contraction.
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Wikihow
wikihow.com › education and communications › studying › english › english grammar › how to use contractions: 12 steps (with pictures) - wikihow
How to Use Contractions: 12 Steps (with Pictures) - wikiHow
August 14, 2025 - For example: “It is time to party.” The sentence with the contraction would be: “It’s time to party” as “it’s” is the contracted version of “it is”. “The horse lifted its head.” This sentence does not need an apostrophe as the “it” is possessive and not a contraction. ... Use contractions in a paragraph. Amp up your ability to use contractions correctly by making a list of things you are going to do during your school day. Use “I” or “he” or “she” to describe each action you are going to do today.
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EnglishClub
englishclub.com › vocabulary › contractions-positive.php
Positive Contractions | Learn English
I will/ I shall I'd ... I would/ I should/ I had you're ... you are you've ... you have you'll ... you will you'd ... you had/ you would he's ... he has/ he is he'll ... he will he'd ... he had/ he would she's ... she has/ she is she'll ... she will she'd ... she had, she would it's ... it has/ it is it'll ... it will we're ... we are we've ... we have we'll ... we will we'd ... we had/ we would they're ... they are they've ... they have they'll ... they will they'd ... they had/ they would Oh yeah. 24 positive contractions...fully understood.