can i leagally debit my deposit from contractors account? Im i
entitled to payment in fully if contract specifies this clause, when
contract has been breached/

Sorry, I do not understand.  Can you rephrase your question?

Even if that is so, u are not legally allowed to debit the money into
your account, the law states that the business and the owner are 2
separate entities.

Could you be more specific in how the contract was allegedly breached
by the other party?  If it was in fact breached, then it's entirely
possible.

Galactic Polyglot

No, the only person(s) who can debit a bank account is an authorized
signer on the deposit account.

There are three exceptions: 
1. The local, state, or federal government can debit an account after
a decision has been reached in a legal proceeding or via a bank levy
(unpaid citations, money owed to the IRS, etc.)
2. The bank can debit an account for funds owed on other bank products
or services (i.e. the customer is not paying their mortgage payment,
which is at the same financial institution) or for transactions made
in error.
3. A beneficiary upon the authorized signer's death, or
power-of-attorney if the authorized signer is not capable of banking.

Your best bet to recover funds is to file a police report and take the
contractor to court.  If you win in court, situation #1 would apply,
and the funds can be released to you (minus any court or attorney
fees).