The law, in the biblical context, is defined as that which proceeds from the mouth of God to outline the way we are to live. An example would be the Law of Moses, which includes the Ten Commandments. The conditions that go along with some of God's stated promises in His Word is another category. The primary purpose of the law is to convict you of your sin, and your disobedience to God and His ways. It serves to convince you of your natural inability to keep the law perfectly, which is a moral and not an intellectual or physical issue. It points out the need for other means of freedom from the inherent guilt that stems from your inability to keep God's law. By the law of God, you know sin. By sin, you are guilty. Grace then, is the unearned love and unmerited favor lavished upon you by God, to those who have accepted Jesus' work on the cross. Unmerited love and favor to you! So, do you want to live by law or by grace?
Grace is such an important concept to truly understand. It's so easy, it's hard to accept so you try to work your way into heaven or to have good "karma." You don't believe or accept that you are loved unconditionally.
Grace, when quoted from the Greek, is most often the term "Charis", defined as favor, acceptance, a kindness granted, and a favor done without expectation of return. It is a free gift of the loving-kindness of God to you. Additionally, the operation of God's Holy Spirit within enables you to walk God's way of life with favor, is one of His greatest gifts.
You, who have accepted Jesus' work on the cross, no longer have to DO anything to earn or work your way into God's good graces. Through Jesus' shed blood, He sees you white as snow.
Good News indeed!