Within the scope of human history there are only two divine covenants: The Covenant of Works and the Covenant of Grace. The covenant of works was that covenant God made with Adam wherein perfect obedience was required for the possession of eternal life. Adam’s sin brought an end to the covenant of works.

But God, being rich in mercy, provided the way for his human creatures to be redeemed from the guilt and penalty of their sin. For this to happen mankind could only relate to God by the means of Divine grace. So God made an everlasting covenant of grace to be fulfilled by the Savior whom he would send. This covenant is first announced in Genesis 3:15 and later reaffirmed and ratified with Abraham (Genesis chapters 12, 15, 17).