What does the term 'covenant of works' mean?

The covenant of works is a term used to describe the initial relationship established between God and humanity, centered on the requirement of perfect obedience to His divine law. Foundationally in the Old Testament, it illustrates that no one can achieve the standard God demands; as it is written, 'No man can keep the law perfectly.' This covenant reveals humanity's inability to fulfill God's requirements. It serves as a contrasting backdrop to the New Covenant of grace, wherein Christ fulfills the law on behalf of those who believe. The failure of the covenant of works highlights the necessity of grace through Christ's redemptive work.