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I am building a php website that has its own login system. based on the email address in the php system, i do query in salesforce (using single admin user) and get data related to their contact using email id. they also do update some data inside salesforce using php forms.

My questions is : is it allowed? Am i breaching any clause in the contract since i am using single user inside salesforce that are being used by multiple users in php system.

Please advise. Thanks in advance

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I don't think you are breaching any clause.

As per Salesforce docs:

We STRONGLY advise against this practice! Salesforce cannot prevent individuals from sharing their login information or from allowing the practice of having many Users login via the same User record, but there are many reasons why no one should adopt this practice.

By using the same username with different users you will run into internal org issues. Security between accounts, contacts, or other objects is no longer considered, data integrity will be an issue and auditing will prove to be hard to do. The user will have no way to track any changes done within the org since there will be no differentiating on what has been done from one person to another. The Setup Audit Trail is rendered useless in this scenario.

If multiple Users are logging in via the same User record, there is no way to track which one of those individuals modified, created or DELETED something in Salesforce. This can wreak havoc on an Org.

Yes, it's technically possible, but please do not do it.

Multiple Users log in with one User record

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