/ˈkʌv.ən.ənt/
From Old French covenant, "agreement," from the verb convenir, "to agree, to come together." From Latin con- "together" + venire "to come."
A covenant is a solemn, binding agreement between two or more parties. In the Bible, it is the primary framework through which God relates to humanity. Biblical covenants are sovereignly administered by God, often including promises, stipulations, and signs. The major covenants (e.g., Noahic, Abrahamic, Mosaic, Davidic, New) progressively reveal God's redemptive plan, culminating in the New Covenant in Christ's blood.
A mutual consent or agreement of two or more persons, to do or to forbear some act or thing; a contract; a stipulation. The covenant of grace is that which is established in the gospel, by which God engages to bestow salvation on man, through the mediation of Christ, on condition of faith in Christ.
In modern language, "covenant" is often used interchangeably with "contract." This misses the sacred, relational, and often life-and-death gravity of a biblical covenant, which is based on solemn oaths and divine promises, not just mutual consideration for a business transaction.