Bismihi ta'ala
Loyalty and honouring one's word is the most valuable and most important of qualities a person can have. If your commitment to your word is weak, or you have no consideration to honouring your promise, what else is there?
Both the female, and the male as well have a commitment to stay loyal and honour their agreement. Betraying this, and violating the promise or contract given is not only a major sin, but could also weaken the very relationship in the case they wish to pursue for marriage. It will always be hovering over them that they betrayed the amanah given to them.
Yes, they can do what they are comfortable with, but stay within the permitter of the agreement.
If what you mean by "physical contact", as in no sexual intercourse, then they can have physical intimacy, but no penetration. This is a common condition fathers place, so this is left for consummation of marriage on wedding night.
If what you mean by "physical contact" is no physical contact whatsoever, then I think this was an unfair condition, and they should speak to her father and explain that this is unrealistic. Or, they can decide if marriage is the best option for them, and hasten that. If, of course, they find each other to be compatible and happy with marriage.
In any case, violating an agreement, especially if it is a condition in the contract is haram and sinful.
Best thing to do is negotiate for a change.
With prayers for your success.
