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What does the term 'covenant of grace' mean?

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The covenant of grace refers to God's agreement with His elect whereby He promises salvation through faith in Jesus Christ.

The covenant of grace is a central theme within Reformed theology, encompassing God's promise of salvation extended to the elect based solely on grace through faith in Jesus Christ. Originating from God’s eternal decree, this covenant assures that His chosen people will be redeemed and brought to eternal life, positioning Christ as the mediator who fulfills the covenant's requirements. This covenant contrasts with the covenant of works, established with Adam, where obedience was required for life. The covenant of grace emphasizes God's initiative in salvation, showcasing His mercy and love as He provides the means (faith in Christ) by which believers can receive salvation and be considered righteous before Him. Thus, the covenant of grace is one of promise rather than performance.
Scripture References: Hebrews 8:6, Ephesians 2:8-9

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