[45] Covenant theology, understanding the Bible: Part VII
Wayne Grudem defines a covenant as “an unchangeable, divinely imposed legal agreement between God and man that stipulates the conditions of their relationship.” God relates to people in the context of covenants. Adam is the federal head of the covenant of works and Jesus Christ is the federal head of the covenant of grace. All people are viewed as being in Adam or in Christ. God also established the Sinaitic covenant with his people through Moses. This is referred to as the old covenant or the first covenant in the New Testament and was replaced by the covenant of grace because sinful people are incapable of keeping it.