A Covenant is an agreement between two parties. The agreement, according to Ancient Near East custom, consisted of five parts: 1) Identification of parties, 2) Historical prologue where the deeds establishing the worthiness of the dominant party is established, 3) Conditions of the agreement, 4) Rewards and punishments regarding keeping the conditions, and 5) Disposition of the documents where each party receives a copy of the agreement (e.g., the two tablets of stone of the 10 Commandments).
Ultimately, the covenants God has made with man result in our benefit. We receive eternal blessings from the covenant of grace. (For further study, see Gen. 2:16-17, 9:1-17, 15:18, Gen. 26:3-5, Gal. 3:16-18, Luke 1:68-79, Heb. 13:20).