Covenants and contracts are similar in that they are both formal agreements between two or more parties. However, there are some key differences between the two according to the Bible:
Definition of a Covenant
A covenant is a solemn agreement made between God and His people, or between human beings under God. The Bible speaks frequently of God’s covenants with His people such as the covenants with Abraham (Genesis 15), the Israelites at Mount Sinai (Exodus 19-24), David (2 Samuel 7), and the New Covenant instituted by Jesus (Luke 22:20). These covenants outline promises and expectations between the parties involved.
According to Baker’s Evangelical Dictionary of Biblical Theology, a covenant is “a binding and solemn agreement made by two or more individuals, parties, etc. to do or keep from doing a specified thing.” The dictionary notes that the Hebrew word for covenant, berit, comes from a root meaning “to bind.”
Some key verses about covenants in the Bible:
- “I will establish my covenant as an everlasting covenant between me and you and your descendants after you for the generations to come, to be your God and the God of your descendants after you.” (Genesis 17:7)
- “Although my house is not yet what it should be, you have dealt with me in accordance with your justice and fairness.” (1 Kings 8:39)
- “Be careful to follow all these decrees I am giving you today, so that you may live and increase and may enter and possess the land the LORD promised on oath to your ancestors.” (Deuteronomy 6:3)
Characteristics of a Covenant
Based on various covenants described in the Bible, here are some key characteristics of a covenant:
- Made by God – Covenants originate from God and are a reflection of His grace and love towards His people.
- Binding – Covenants cannot be broken without serious consequences.
- Conditional – The fulfillment of the covenant depends on both parties meeting certain conditions.
- Mutual Commitment – All parties make solemn commitments to fulfill their obligations.
- Exclusive – Covenants create a special relationship between the parties involved.
- Everlasting – Biblical covenants are not limited by time.
Theologian Louis Berkhof summarizes that a covenant “is a pact or agreement between two parties.” He notes that in the Bible, both God and human beings can make covenants.
Definition of a Contract
A contract is a legally binding agreement between two or more parties, enforceable by law. Contracts outline a voluntary arrangement between parties who exchange promises to perform or abstain from certain acts. The Bible does mention contracts between people but does not go into extensive detail.
Here are some key Bible verses about contracts:
- “But you say, ‘What a burden!’ and you sniff at it contemptuously,” says the LORD Almighty. “When you bring injured, lame or diseased animals and offer them as sacrifices, should I accept them from your hands?” says the LORD.” (Malachi 1:13)
- “And they said, “Come, let us build ourselves a city and a tower with its top in the heavens, and let us make a name for ourselves, lest we be dispersed over the face of the whole earth.” (Genesis 11:4)
- “Then Abraham said to Ephron in the hearing of the people of the land, “But if you will, hear me: I give the price of the field. Accept it from me, that I may bury my dead there.” (Genesis 23:13)
Characteristics of a Contract
Here are some key qualities of a legal contract:
- Voluntary Agreement – Both parties consent to the terms of the contract.
- Exchange – Something of value is exchanged between the parties.
- Binding – Contracts are legally binding.
- Enforceable – Contracts can be enforced in a court of law.
- Written Terms – Contract terms are clearly defined in writing.
- Time Bound – Contracts usually have a defined duration.
- Legal Purpose – The purpose of a contract must be legal.
According to Thompson on Real Property, a contract is “an agreement containing promises enforceable in law. The basic elements of a contract are mutual assent, consideration, capacity, and legality.” Contracts are made between people under the laws of the land rather than directly with God.
Key Differences Between a Covenant and a Contract
Based on the above, here are some key differences between a covenant and a contract:
- Parties – Covenants are made between God and man while contracts are solely between people.
- Initiation – God initiates a covenant out of grace, while people initiate contracts out of a voluntary agreement.
- Basis – Covenants are based on God’s promises while contracts are based on mutual agreement between parties.
- Terms – Contract terms are negotiable, but covenant terms are dictated by God.
- Duration – Covenants are eternal while contracts end after a defined period.
- Commitment – Covenants demonstrate deep relationship while contracts stress performance.
- Bonding – Covenants unite parties spiritually while contracts unite parties economically or through legal rights.
- Enforcement – God enforces covenants while human laws enforce contracts.
- Binding Strength – Covenants are divinely secured while contracts are legally secured.
- Solemnity – Covenants are sacred oaths before God while contracts lack this spiritual dimension.
In summary, covenants are solemn, binding agreements initiated by God out of His grace to unite Himself with His people and assure them of His faithfulness. Contracts, on the other hand, are legally binding agreements voluntarily entered into by human beings to define a transaction or relationship between them for a limited time.
Examples of Covenants vs. Contracts
Marriage
Marriage can be viewed as:
- A covenant – God brings together a man and woman and binds them together as one flesh on the basis of His promises to each other, to Him, and to society. He holds them accountable to honor their vows.
- A contract – Two people voluntarily enter into an agreement to be married according to terms acceptable to both of them in line with the laws of the land. It is legally binding.
Employment
The employment relationship is:
- A covenant – God calls believers to work honestly and honorably unto Him, carrying out their duties as working for the Lord (Colossians 3:23).
- A contract – An employee voluntarily agrees to provide certain services to an employer based on negotiated terms. The commitments made are legally enforceable.
International Treaties
A treaty between nations is:
- A covenant – Nations bind themselves together before God to advance His purposes for peace, justice, and the welfare of humankind.
- A contract – Independent states enter a legally binding pact to advance their national interests through mutual promises and obligations.
These examples illustrate how the same situation can have covenantal and contractual aspects based on relationships, motives, accountability, and binding force.
Covenants and Contracts Working Together
Throughout history, God has used covenants and contracts together to order human relationships and society. Here are some examples:
- Contracts between Abraham and local clans formalized covenant promises about territory (Genesis 23).
- Deuteronomy contains God’s covenant with Israel as well as civil laws to govern community relationships.
- David’s covenant as king was supplemented with contracts like his friendship pact with Jonathan (1 Samuel 18:3).
- Christian marriage counseling guides couples to see matrimony as both a covenant before God and a legally binding contract.
Covenants and contracts should not be seen as inherently conflicting. God can use legal contracts between people to supplement covenant relationships and express covenant commitments.
The New Covenant and the Law
The New Covenant instituted by Jesus does not nullify all laws and contracts between people. Rather, it fulfills God’s covenant promises and redeems human relationships:
- Jesus said he came to fulfill the Old Testament law, not abolish it (Matthew 5:17).
- The New Covenant provides forgiveness of sins and inner transformation that enables people to keep God’s law (Jeremiah 31:31-34).
- Christian grace aims for people to “serve one another humbly in love,” not live without law and obligation (Galatians 5:13-14).
- Contracts and civil laws continue to play an important role in structuring life in this age (Romans 13:1-7).
Theologian Vern Poythress concludes about covenants and law: “There is both continuity and discontinuity between the civil laws of Israel and later civil law for modern states. Specific details change, while moral principles continue.”
Jesus and Covenant Faithfulness
Jesus emphasized that following Him would deepen people’s commitment to God’s covenant rather than relax it. For example:
- Adultery – He strengthened obedience to the 7th commandment by highlighting lust in the heart, not just acts (Matthew 5:27-28).
- Murder – Hating a brother is akin to breaking the 6th commandment (Matthew 5:21-26).
- Lawkeeping – He calls disciples to surpass the Pharisees in righteousness (Matthew 5:20).
- Marriage – He upheld fidelity and chastity before and during marriage (Matthew 5:32, Matthew 19:9-12).
Following Jesus is ultimately about having a new heart that desires to keep God’s covenant obligations. It is not about seeking maximum license through easy escape clauses.
The Epistle to the Hebrews and Covenants
The New Testament book of Hebrews has extensive teaching about Jesus as the mediator of a new and better covenant:
- It contrasts the inadequacy of the old Mosaic covenant with the excellence of Christ’s sacrifice (Hebrews 8:7, 9:23-28).
- It interprets Jesus’ death as instituting the promised New Covenant of Jeremiah 31 (Hebrews 8:8-13).
- It clarifies that Abraham and other heroes lived by faith in God’s covenant promises that find fulfillment in Jesus (Hebrews 11).
- It warns against spiritual rebellion and falling away from the New Covenant, just as Israelites broke the old Sinai covenant (Hebrews 10:26-31).
So while the specifics changed, Hebrews highlights continuity in God’s covenant purposes from Abraham to Christ. God’s faithfulness persisted through human faithlessness.
Implications for Ethics
Covenants and contracts both have implications for ethics and human conduct. Here are a few principles that emerge:
- All voluntary agreements should be kept, whether covenants or contracts (Psalm 15:4, Matthew 5:37).
- Contracts that violate God’s ethical standards should be avoided (2 Corinthians 6:14).
- Covenant obligations to God always take priority over contractual obligations (Acts 5:29).
- Marriage must be honored both as a covenant and legal contract (Hebrews 13:4).
- Business contracts should be written under God’s moral law and wisdom (Proverbs 3:5-6).
Ethics professor Scott Rae summarizes: “Marriage is best understood as a covenant grounded in the covenant fidelity of God and modeled after it. But marriage is also a contract with all the legal rights and obligations that go with it.” Biblical covenants and contracts together promote human flourishing.
Conclusion
Covenants and contracts overlap in many ways but also reflect key differences. Covenants relate people to God out of His gracious promises while contracts relate people to one another through mutual agreements enforceable in law. Both play an important role in ordering human relationships and are meant to complement one another. Through the New Covenant instituted by Jesus, God grants His Spirit to write His law on believers’ hearts so they can walk in His statutes and keep His covenant commitments. This inner transformation allows them to also fulfill the requirements of legal contracts in a manner pleasing to the Lord.