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While Paul spoke by name of faith far more often than of grace, he did speak of grace often: eighty-five verses in the King James Version (not including Hebrews), compared to, for example, forty-five for church and forty-seven for sin, so it is certainly not a topic for us to ignore. Twenty of those verses are in the book of Romans.

The usual theological definition for grace seems to be “unmerited favor.” However, this definition is probably quite limited in its usefulness. First, “unmerited” is an ungainly word that almost conceals the meaning of the term as much as it reveals it. Second, this definition is used so often that we may begin to understand in it a meaning not inherent in the actual definition (for example, understanding “favor” as “heaven”). Third, this definition does not specifically address the unique features of the grace of God. One dictionary definition of grace is “A favor rendered by one who need not do so; indulgence.” (American Heritage Dictionary), and this definition probably deals with the first two objections to the common definition. However, it does not address the third, which should be solved from the Scriptures, rather than theology, the dictionary, or even the concordance.

Thus, let us turn our attention to the Scripture, beginning with a passage from Paul's letter to Titus:

“For the grace of God that bringeth salvation hath appeared to all men, Teaching us that, denying ungodliness and worldly lusts, we should live soberly, righteously, and godly, in this present world; Looking for that blessed hope, and the glorious appearing of the great God and our Saviour Jesus Christ; Who gave himself for us, that he might redeem us from all iniquity, and purify unto himself a peculiar people, zealous of good works.” (Titus 2:11-14)

This verse clearly tells us that grace brings salvation. But then it goes on to tell us that grace teaches us to live in a holy manner. Remembering this, let's look at two verses in Romans:

“By whom also we have access by faith into this grace wherein we stand, and rejoice in hope of the glory of God.” (Romans 5:2)

“That as sin hath reigned unto death, even so might grace reign through righteousness unto eternal life by Jesus Christ our Lord.” (Romans 5:21)

The first verse here shows us that faith is our way of accessing grace. The second tells us that grace brings righteousness, and thus eternal life. The Scripture speaks of “holiness, without which no man shall see the Lord” (Hebrews 12:14), but we know that the man who has not been saved is helpless to produce this holiness. However, God intervened with His grace. As we can see, God's grace brings us holiness. With this holiness, given by God, we can be justified.

We find an order here: Faith → Grace → Righteousness → Eternal Life. Faith activates the grace of God. This grace gives us righteousness. And because we are just before God, we can have eternal life.

Here, perhaps, is where Paul and James reconcile. Paul says, “Therefore we conclude that a man is justified by faith without the deeds of the law.” (Romans 3:28) James says, “Ye see then how that by works a man is justified, and not by faith only.” (James 2:24)

Paul is apparently correcting the error of those who thought that by their own works, by following the Law, they could attain to either eternal life or grace. They were trying to change the order, perhaps to Works of the Law → Eternal Life. Their error was thinking that faith was unnecessary, because they could earn their own way through the Law. But the problem is that no one can perfectly follow God's requirements. “Is the law then against the promises of God? God forbid: for if there had been a law given which could have given life, verily righteousness should have been by the law. But the scripture hath concluded all under sin, that the promise by faith of Jesus Christ might be given to them that believe.” (Galatians 3:21-22)

But James's address seems to be aimed at a different group—those who thought that they didn't need grace, because faith was sufficient. They probably would have said they believed in grace, but they rejected its work (“Teaching us that, denying ungodliness and worldly lusts, we should live soberly, righteously, and godly, in this present world”). And James wanted to show them that for justification, grace and its work must be accepted. Faith is our work, activating grace, but without the work of grace, faith is useless.

Both James and Paul use the illustration of Abraham. In Romans 4, Paul shows that Abraham was justified by belief, not works. In James 2, James shows that Abraham was justified by works, not by belief only. I believe that the confusion here comes from these two passages being interpreted with a wrong view of justification. While justification can apparently refer to the cleansing of a sinner, as in Romans 8:30 (“Moreover whom he did predestinate, them he also called: and whom he called, them he also justified: and whom he justified, them he also glorified.”), it can also appear to the righteousness of someone who is not a sinner. Look at these verses:

“And without controversy great is the mystery of godliness: God was manifest in the flesh, justified in the Spirit, seen of angels, preached unto the Gentiles, believed on in the world, received up into glory.” (I Timothy 3:16)

“But wisdom is justified of all her children.” (Luke 7:35)

“And all the people that heard him, and the publicans, justified God, being baptized with the baptism of John.” (Luke 7:29)

“Against thee, thee only, have I sinned, and done this evil in thy sight: that thou mightest be justified when thou speakest, and be clear when thou judgest.” (Psalm 51:4)

We can see that Abraham already had a good relationship with God at the time when God called him to offer Isaac (the time that he was “justified by works”). In fact, the event described in the verse that both James and Paul reference as referring to Abraham's justification occurs a long time before the offering up of Isaac. But let's look at James again. “And the scripture was fulfilled which saith, Abraham believed God, and it was imputed unto him for righteousness: and he was called the Friend of God.” (James 2:23) James viewed Abraham's “justification” as being a fulfillment of God's imputation of righteousness. So we can see Abraham's Faith → Abraham's Grace → Abraham's Righteousness → Abraham's Eternal Life. The faith brought down the grace of God which made Abraham able to serve God.

And so grace brings salvation—salvation from sin, from hell, from the devil, from self—from a life that is in the wrong to a life that is full and complete, a life where faith works with works, and is made perfect. And so, since grace is not only a one-time experience, we can grow in grace (II Peter 3:18). It is how we can be “stewards of the manifold grace of God” (I Peter 4:10). And the heart can be established with grace (Hebrews 13:9).

But there is also a danger of doing despite to the Spirit of Grace (Hebrews 10:29). And so we need to persevere in grace, following God wherever He leads, trusting and obeying His Word and resting in His promises.