The position of Barth and others, that the covenant with Adam is thoroughly legalistic, is based on the incorrect assumption that grace and works cannot coexist as covenant principles. However, the difficulty of seeing the harmony between these principles is real. This article reconsiders the covenant with Adam in light of the medieval concept of the two powers of God, or as we shall argue here, the two perspectives on God's power. These two perspectives, part of the original intellectual milieu in which covenant theology arose, demonstrate that the divine covenant with humanity may include aspects of both God's grace and human merit simultaneously. God's grace is apparent de potentia absoluta, from the perspective of God's absolute power, and God's justice and the possibility of Adam's merit are apparent de potentia ordinata, from the perspective of God's ordained power. Both perspectives, what God could do and what he has in fact chosen to do, are valid and necessary perspectives for understanding God's covenant dealings.