We find this somewhat perplexing phrase first mentioned in the book of James ...
But he who looks into the perfect law of liberty and continues in it, and is not a forgetful hearer but a doer of the work, this one will be blessed in what he does. James 1:25
Though the words 'law' and 'liberty' seem to be contradictory terms, they actually represent what the Gospel of Jesus Christ is all about. It is referred to as a law but not comprised of strict demands that require our obedience. We have a 'fallen nature' that prohibits us from doing so ...
I am the vine, you are the branches. He who abides in Me, and I in him, bears much fruit; for without Me, you can do nothing. John 15:5
The 'law of liberty' only exists when the righteousness of Christ is applied to your life. His perfect obedience and substitutionary death on Calvary's cross enabled God to offer pardon.
Paul referred to it as the 'law of faith' ...
Where is boasting then? It is excluded. By what law? Of works? No, but by the law of faith. Romans 3:27
'Liberty' is found in Christ because He fulfilled God's perfect 'Law' from the Old Covenant. Those who come to Him by faith obtain freedom from sin’s bondage ...
Therefore if the Son makes you free, you shall be free indeed. John 8:36
God’s Word plainly teaches that all have sinned and stand condemned before the Lord. No one but Jesus Christ has ever fully obeyed the law of God. He who knew no sin became sin for us. His sacrifice redeems all who trust in Him by faith ...
For as many as are of the works of the law are under the curse; for it is written, 'Cursed is everyone who does not continue in all things which are written in the book of the law, to do them'. But that no one is justified by the law in the sight of God is evident, for 'the just shall live by faith'. Galatians 3:10-11
Christ’s perfect sacrifice releases us from an eternal death sentence (which breaking the Law of God brings upon all sinners) ... and it allows true believers to put off the works of the flesh, put on love, and walk in the Spirit.

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