Used to hold the missing link chain together on the fridge in Nowhere
Inside a smashed case in the Nowhere Jewelry store.
The Ring of Contract is an item found in Silent Hill. It is located in a smashed display case on the 2nd floor jewelry shop behind the "Hagith" door. This ring is used to hold together the broken link chain on the fridge when the player takes out the Dagger of Melchior on the 1st floor Kitchen in the "Phaleg" hallway of Nowhere.
If this ring is not used, the Bloodsucker monster in the fridge will reveal itself and instantly kill Harry Mason.
Its importance is somewhat like the hairdryer in Silent Hill 3, where a monster will cause instant death unless killed by plugging in the dryer and electrocuting it.