Technically, from one perspective, all covenants that God makes with creatures are gracious in the sense that He is not obligated to make any promises to His creatures. But the distinction between the covenant of works and grace is getting at something that is of vital importance, as it has to do with the Gospel. The covenant of grace indicates God’s promise to save us even when we fail to keep the obligations imposed in creation.

via The Covenant of Works by R.C. Sproul | Reformed Theology Articles at Ligonier.org.

Wow! How far we have fallen