THE OLD CONTRACT STATES THAT IF ISRAEL :

1. Obeys God,
2. Keeps His laws, and
3. Follows His commands,

THEN :

1. They will be blessed,
2. They will live, and
3. They will be God's people.

Note that this contract depends on Israel's performance.

BUT WHY IS THERE ANOTHER CONTRACT CALLED THE "NEW TESTAMENT"?

"The time is coming", declares the Lord, "when I will make a new covenant with the house of Israel and with the house of Judah; not like the covenant that I made with their fathers in the day when I took them by the hand to lead them out of the land of Egypt; because they did not remain faithful to my covenant, and I turned away from them." (Jeremiah 31:31-34)

Note that Israel failed to perform its part of the contract.