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 ExchangeCan you omit “is” outside of “he’s” or “she’s”?
Is "there's" as common a contraction as "he's/she's"?
Sure. I use it all the time. More than he's or she's, that's for sure.
More on reddit.comContraction using a name and 'is'
Contractions with is?
What are contractions?
When should you use contractions?
How do contractions work?
Videos
“He’s” and “she’s” are correct contractions, but can the same be said for any noun+is, or are these two words exceptions?
For example, “John is a cool dude” would become “John’s a cool dude”. I say and hear “is” being shortened/omitted on the regular, but can this be put into writing? I try to avoid contractions in formal writing anyway, but would it be grammatically incorrect if I said/wrote “John’s” like in the example?
Also, semi-related question, but would it be correct to say that some words are “abbreviated” in contractions?