The reason is to make every connection accessible. For instance, if you just splice the wires together and tape them in the wall with no box and cover it with drywall, how will you get back to it to work on the splice if there’s a problem? You can open a box at any time.
How an Electrical System Works
By Timothy Thiele, About.com Guide
The branch circuits are run into electrical boxes mounted in the walls of every room of your house. The National Electric Code requires that wires be spliced in boxes.
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