The Covenant of Grace is one of the three theological covenants of Covenant theology: the Covenant of Redemption, the Covenant of Works, and the Covenant of Grace. This third covenant, the Covenant of Grace, promised eternal blessing for belief in Christ and obedience to God's word. It is seen as the basis for all biblical covenants that God made individually with Noah, Abraham, and David, nationally with O.T. Israel as a people, and universally with man in the New Covenant.
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Westminster Confession of Faith
- VII.3. Man by his fall having made himself incapable of life by that covenant (the Covenant of Works), the Lord was pleased to make a second, commonly called the covenant of grace: wherein he freely offered unto sinners life and salvation by Jesus Christ, requiring of them faith in him, that they may be saved, and promising to give unto all those that are ordained unto life, his Holy Spirit, to make them willing and able to believe.
- VII.4. This covenant of grace is frequently set forth in the Scripture by the name of a testament, in reference to the death of Jesus Christ, the testator, and to the everlasting inheritance, with all things belonging to it, therein bequeathed.
- VII.5. This covenant was differently administered in the time of the law, and in the time of the gospel: under the law it was administered by promises, prophecies, sacrifices, circumcision, the paschal lamb, and other types and ordinances delivered to the people of the Jews, all fore-signifying Christ to come, which were for that time sufficient and efficacious, through the operation of the Spirit, to instruct and build up the elect in faith in the promised Messiah, by whom they had full remission of sins, and eternal salvation, and is called the Old Testament.
- VII.6. Under the gospel, when Christ the substance was exhibited, the ordinances in which this covenant is dispensed, are the preaching of the Word, and the administration of the sacraments of Baptism and the Lord's Supper; which, though fewer in number, and administered with more simplicity and less outward glory, yet in them it is held forth in more fulness, evidence, and spiritual efficacy, to all nations, both Jews and Gentiles; and is called the New Testament. There are not, therefore, two covenants of grace differing in substance, but one and the same under various dispensations.