“While the condition of the original covenant of works was full and perfect personal obedience to the commandments of God, the condition of the covenant of grace is faith in Jesus Christ, who undoes the awful consequences of the fall1Romans 5:15-21. All of the promises and benefits of this covenant are received through faith in Jesus Christ—trusting in his person and work on our behalf. Such faith is a gift from God, not a work which we must perform. The essence of this gracious covenant can be seen in the oft-repeated refrain first found in Genesis 17:7. “And I will establish my covenant between me and you and your offspring after you throughout their generations for an everlasting covenant, to be God to you and to your offspring after you.” If we fast-forward redemptive history to the final chapter, when the new Jerusalem descends out of heaven on the last day, once again we hear these wonderful words which serve as the motto of the covenant of grace. “And I heard a loud voice from the throne saying, `Behold, the dwelling place of God is with man. He will dwell with them, and they will be his people, and God himself will be with them as their God”2Revelation 21:3. Yes, he is our God, and we are his people through his gracious covenant.”
Kim Riddlebarger, The Basics – The Covenant of Grace
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