oil leak

my 93 accord has oil all over the oil pan and on the trans i checked the trans fluid but it was fine. The oil light would come on like every other day so i kept on adding oil the dipstick never would read right but it felt like it needed oil. So today i drained the oil there was about 7-8 quarts in it i know the oil seals are messed up now but why did the light keep coming on and why did it feel like it needed oil? How would oil drops be all over the trans too?

If it's leaking from the rear main seal, it would go all over between the oil pan and tranny case. Oil light comes on when pressure is low, not when level is low (although if the level gats low enough, you will loose pressure).

Lotta things could have happened. Get the level right and see what happens. If the light comes on and flickers, moreso at idle, and goes out once you give it gas, the main bearings are shot and not holding pressure or the pump is dying...

Also...and perhaps more importantly, check the oil pressure sensor...sometimes they crack and spray oil all over, and may make the light come on if it's bleeding off enough pressure.