In the Baháʼí Faith there are two covenants, deemed the 'greater' and 'lesser'. The greater covenant refers to an agreement of progressive revelation: that God will send messengers about every thousand years, and it is humanity's duty to recognize them and respond to their teachings. The lesser covenant is the agreement between the faith's founder, Baháʼu'lláh, and his followers, regarding the succession of leadership and the maintenance of unity.

Succession in the Baháʼí covenant was explicit and in written form, providing a clear chain of authority that led Baháʼís to follow ʻAbdu'l-Bahá as the authorized interpreter of Baháʼí scripture after Baháʼu'lláh's death, and the one who would lead the community. Baháʼu'lláh outlined the Universal House of Justice, a nine-member institution that could legislate on religious matters, and hinted at an appointed role for his descendants, both of which were elaborated upon by ʻAbdu'l-Bahá when he appointed Shoghi Effendi as the Guardian. The Universal House of Justice, first elected in 1963, remains the supreme governing body of the worldwide Baháʼí community. Anyone rejecting a link in this chain of leadership is regarded as a Covenant-breaker.

To Baháʼís, the Covenant of Baháʼu'lláh and its guarantee of unity represents a unique feature of their religion. For example, they regard the successorships of Jesus to Saint Peter and Muhammad to Ali as unwritten attempts to maintain unity that ultimately failed as their religions broke into contending factions. Through the covenant, the Baháʼí Faith prevented schism, and the several attempts to form alternative leadership have failed to attract a sizeable following due to their lack of scriptural authority.