Covenant theology affirms:
1. Two great covenant heads over all humanity - Rom. 5:18-19, "So then as through one transgression there resulted condemnation to all men, even so through one act of righteousness there resulted justification of life to all men. For as through the one man's disobedience the many were made sinners, even so through the obedience of the One the many will be made righteous. 1 Corinthians 15:22, "For as in Adam all die, so also in Christ all shall be made alive." The contrast between these two federal heads and all in them causes redemption in Christ to stand out in the foreground.
2. Two great covenants over all of history - The covenant of works in Adam and the covenant of grace in Christ. Recognition this doctrine via the analogy of faith is essential to the proper interpretation and proclamation of every biblical text. Covenant theology is the hinge that stands between biblical theology (progressive revelation) and systematic theology (God, Man, Christ, Church, Eschaton) and recognizes Christ as the centerpiece of Scripture, theology, and of practical applications to the conscience.
3. The progressive revelation of the outworking of the covenant of grace to mankind. This is called “biblical theology.” Biblical theology is not just theology that is "biblical." Rather, it is the account of the historical progression of divine revelation in the Bible in each epoch, finding its center and climax in the person of Jesus Christ. Ephesians 2:12 says, "Remember that you were at that time separate from Christ, excluded from the commonwealth of Israel, and strangers to the covenants of [the] promise, having no hope and without God in the world. But now in Christ Jesus you who formerly were far off have been brought near by the blood of Christ."
4. The doctrine of Law and Gospel in all the Scriptures (Covenants of Works and Grace) are simply the outworking of the two great covenants and their heads in the whole of Scripture. This is the systematic theology formed from exegetical and biblical theology. The law reveals God's demand and our condemnation, while the Gospel reveals that Christ accomplished God's demands for our justification and life. Galatians 3:10-14 says, "For as many as are of the works of the Law are under a curse; for it is written, 'Cursed is everyone who does not abide by all things written in the book of the law, to perform them.' Now that no one is justified by the Law before God is evident; for, 'The righteous man shall live by faith.' However, the Law is not of faith; on the contrary, 'He who practices them shall live by them.' Christ redeemed us from the curse of the Law, having become a curse for us, for it is written, 'Cursed is everyone who hangs on a tree' in order that in Christ Jesus the blessing of Abraham might come to the Gentiles, so that we might receive the promise of the Spirit through faith."
5. The New Covenant of Jesus Christ is the fulfillment and establishment in history of the grace of redemption planned by the Father before the foundation of the world for all the elect in Christ. 2 Timothy 1:8-11, "Therefore do not be ashamed of the testimony of our Lord or of me His prisoner, but join with me in suffering for the gospel according to the power of God, who has saved us and called us with a holy calling, not according to our works, but according to His own purpose and grace which was granted us in Christ Jesus from all eternity, but now has been revealed by the appearing of our Savior Christ Jesus, who abolished death and brought life and immortality to light through the gospel, for which I was appointed a preacher and an apostle and a teacher."