The Old Covenant is also known as the Covenant of the Law, while the New Covenant is known as the Covenant of Grace. So, what is Grace? Grace is God’s unmerited and unearned favour and blessing. The New Covenant is simply God’s unmerited and unearned favour and blessing. You don’t work for it in any way; it is received (Ephesians 2:8-9, “For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: Not of works, lest any man should boast. (KJV)”).
The easiest ways to understand the contrast between Grace and the Law is to look into the scriptures. Below are a few scriptures that differentiate them;
John 1:17, “For the LAW was given by Moses, but GRACE and truth came by Jesus Christ. (KJV)”
Romans 5:20, “Moreover the LAW entered, that the offence might abound. But where sin abounded, GRACE did much more abound:”
Romans 6:14, “For sin shall not have dominion over you: for ye are not under the LAW, but under GRACE.”
Romans 6:15, “What then? shall we sin, because we are not under the law, but under grace? God forbid.” Sin is reduced under Grace; it does not increase. The Grace of God helps us and teaches us not to sin. Titus 2:11-12, “For the grace of God that bringeth salvation hath appeared to all men, Teaching us that, denying ungodliness and worldly lusts, we should live soberly, righteously, and godly, in this present world; (KJV).”
Galatians 2:21, “I do not frustrate the grace of God: for if righteousness come by the law, then Christ is dead in vain. (KJV).”
Galatians 5:4, “Christ is become of no effect unto you, whosoever of you are justified by the law; ye are fallen from grace. (KJV).” This simply means that Christ will become of no effect upon you if you are justified (declared righteous by the law). The New International Version reads, “You who are trying to be justified by the law have been alienated from Christ; you have fallen away from grace.” The Amplified Classic Version reads, “If you seek to be justified and declared righteous and to be given a right standing with God through the Law, you are brought to nothing and so separated (severed) from Christ. You have fallen away from grace (from God’s gracious favor and unmerited blessing).”
Ephesians 2:8-9, “For by grace you have been saved through faith, and that not of yourselves; it is the gift of God, not of works, lest anyone should boast. (KJV).” Let’s see other translations:
Ephesians 2:8-9, “For it is by free grace (God’s unmerited favor) that you are saved (delivered from judgment and made partakers of Christ’s salvation) through [your] faith. And this [salvation] is not of yourselves [of your own doing, it came not through your own striving], but it is the gift of God; Not because of works [not the fulfillment of the Law’s demands], lest any man should boast. [It is not the result of what anyone can possibly do, so no one can pride himself in it or take glory to himself.] (AMPC).”
Ephesians 2:8-9, “God saved you by his grace when you believed. And you can’t take credit for this; it is a gift from God. 9 Salvation is not a reward for the good things we have done, so none of us can boast about it. (NLT).”
Romans 10:4, “For Christ is the end of the law for righteousness to every one that believeth.” It simply means we will no longer need the law, now that we are in Christ Jesus.
With all these scriptures, I’m sure you are now convinced that we are not to live by the Old Covenant (The covenant of the Law) but by the New Covenant, (The Covenant of Grace) which is not based on performance but on faith in Jesus Christ and what He has already done.
