Law is a practical discipline; theory has no place in law. With specific references to the Law of Contract, discuss.

This statement is incorrect. Theory is a fundamental component of law, because it is through legal theories that law is created.

Law is a social science, which studies the norms that govern the lives of men in society. Thus, each of the laws that the state imposes on its citizens has behind it a comprehensive study of the sociological, cultural, political, and economic conditions of the society to which they will apply.

Thus, theories such as the theory of abuse of rights or good faith apply in contracts, whereby what is established in private contracts must be fulfilled in good faith, without trying to change the interpretations for particular convenience, and without abusing the legal position to harm the other party.

Ultimately, since law is a social science, theories about its development are influential when drafting laws.