Personally. I hate contracts. I had to be put on a stupid SI contract (actually it wasn't by my T but my residence manager) and, seriously, how is signing a piece of paper going to magically make you stop a certain action? If anything it makes you feel dumb, and guilty if you don't abide by this "contract". I don't think guilting someone into doing something is the right solution.
I do however believe that your T does care for you. Maybe he just doesn't quite know how to get a handle on this one ... have you talked to him about how you don't think the contract is possibly the right way to go? maybe he just needs a little bit of feedback?
I'm sorry you're feeling so crummy ... hang in there my friend
Jacq