For finding fault with Him, He saith, Behold, the days come, saith the Lord, when I will make a new covenant with the house of Israel and with the house of Judah;
For the sake of this discussion we will provide a brief definition of covenant, which is an agreement between two people, but for today's discussion a covenant, is an agreement between God and man where God set the terms and each person decides whether to abide by the terms set forth by God. Those who obeyed the terms they were blessed whereas if the terms were disobeyed then punishment followed. This was witnessed throughout Israel's history and this principle applies today.
The Old Covenant was based on grace, law and obedience while the New Covenant is based on grace through Jesus Christ. Under the Old Covenant/Testament was one of promises, but the New Covenant/Testament is one of fulfillment through Christ (Galatians 3:8-29), both are gifts of God's grace. The New Covenant was written in the hearts of man so man would know God personally, while the Old Covenant was written on stones and tables which provided the opportunity for misplacement. The New Covenant was established by Christ Himself and provides for the forgiveness of sin while the Old Covenant pointed to the gravity of sin and its consequences. Under the Old Covenant animal blood was sacrificed while the New Covenant Christ's blood was shed as He was the sacrificial lamb slain from the foundation of the world and this was God's redemptive plan.
The New and everlasting covenant.
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