In this study, we extend the penetration method, previously introduced to simulate contact of linear hydrated tissues in an efficient manner with the finite element method, to problems of nonlinear biphasic tissues in contact. This paper presents the derivation of contact boundary conditions for a biphasic tissue with hyperelastic solid phase using experimental kinematics data. Validation of the method for calculating these boundary conditions is demonstrated using a canonical biphasic contact problem. The method is then demonstrated on a shoulder joint model with contacting humerus and glenoid tissues. In both the canonical and shoulder examples, the resulting boundary conditions are found to satisfy the kinetic continuity requirements of biphasic contact. These boundary conditions represent input to a three-dimensional nonlinear biphasic finite element analysis; details of that finite element analysis will be presented in a manuscript to follow.