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If There are 2 ways on how to delete an Entity Contact. Although if the contact is used as the default contact, it cannot be deleted.

From Entity | Contacts tab | Remove: 

1. Open the an existing entity record
2. Open the Contact record from Contacts tab
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3. Click Delete toolbar button. Confirmation message will appear
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Click Yes on
4. from any entities.
5. Navigate to Contacts tab.
6. In the grid area, select the contact you wish to delete, and then click the Remove button.
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7. Click the Yes button on the confirmation message.
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From Entity Contact screen | Delete:

1. Open an existing entity record from any entities.
2. Navigate to Contacts tab.
3. In the grid area, select the contact you wish to delete, and then click the Open button.
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4. On the Entity Contact screen, click the Delete toolbar button. 
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5. Click Yes on the message box. Contact record will be deleted.
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