Therefore, because Paul clearly says that “the righteousness of God has been revealed in the Gospel without the Law,” it follows that the principal point in this matter is that the true and clear distinction between Law and Gospel be established and carefully retained. Luther, on Gal. 2:14, truly and elegantly says: “You should distinguish the righteousness of the Gospel from the righteousness of the Law as diligently as heaven is distinguished from earth, light from darkness, day from night … and would that we could separate them even farther!” [Lectures on Galatians, 1535; cf. Luther’s Works, Amer. Ed., 26.115].
... we shall review only the main differences by which the doctrine of the Gospel must be distinguished from the Law.
1. The doctrine of the Law to a certain degree is known to human reason. But the Gospel is a mystery hidden from the world, revealed only by the ministration of the Spirit.
2. Luther correctly and elegantly says that both the doctrine of the Law and the doctrine of the Gospel deal with the subject of sin, but in a different way. The Law shows sin, accuses, imputes guilt, and condemns sin; but the Gospel remits, covers, and does not impute sin, because it points to “the Lamb of God, who takes away the sin of the world” [John 1:29].
3. Paul in Rom. 3:21; 4:5; and 10:5 ff. shows this difference. The doctrine of the Law is the law of works, which talks about doing: “He who does these things …” It imputes a reward to the one who does the Law. But the Gospel is the law of faith, because “to one who does not work but believes in Him who justifies the ungodly” He imputes faith for righteousness.
4. The Law prescribes and demands of each individual perfect obedience to all the commandments of God, and it threatens a curse on those who do not have such conformity with the will of God. But the Gospel, because the Law is weakened through the flesh, Rom. 8:3, shows Christ, who was made sin and a curse, “made under the Law,” Gal. 4:4, and is “the fulfillment of the Law unto righteousness to everyone who believes,” Rom. 10:4.
5. The promises of the Law are conditional. But the promise of the Gospel concerning the remission of sins is free.
6. “The Law imprisons all under sin,” Gal. 3:22; “makes the whole world guilty before God,” Rom. 3:19; “works wrath,” Rom. 4:15; “puts us under the curse,” Gal. 3:10; is “the ministration of death” and damnation [2 Cor. 3:7, 9 KJV]. But the Gospel is the Word of salvation, peace, reconciliation, etc. It frees from the law of sin and death and is “the ministration of” righteousness and “the Spirit” [2 Cor. 3:8 KJV].
7. The Law shows what the good works are in which God wants the regenerate to exercise obedience. But the Gospel teaches how they can demonstrate this obedience. For the Gospel contains the promise of the Spirit of renewal, who writes the Law into the hearts of believers, Jer. 31:33. It also teaches how the beginnings of obedience, although imperfect and contaminated in many ways, are pleasing to God in those who are righteous for the sake of Christ.
8. The Law speaks to hypocrites, the secure, the old Adam. The Gospel, however, speaks to the contrite, the broken, the captives, and keeps the new man in a state of grace.
I believe that these are the main points of difference.
Chemnitz, Martin ; Preus, Jacob A. O.: Loci Theologici. electronic ed. St. Louis : Concordia Publishing House, 1999, c1989, S. 449
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