The Israelites are about to enter into Canaan and begin their conquest of the land. From a prior episode, Moses is prohibited from entering the land and knows that he time is over.  Since the Israelites' daily lives will be different, the covenant is adapted to fit their new setting.

Moses gives three sermons to the nation. The first is recounting and reminder of all the acts that God has performed for the nation. This should be understood as encouragement knowing that God's promises are guarentees.  The second sermon is retelling the law and the new adjustments to their daily lives once they occupy the land.  And the third sermon covers the transition of leadership from Moses to Joshua, but also Moses prophetically telling the nation that they will eventually fall into apostacy that will require God to drive them into exile.  This is fulfilled with the 587 BC destruction of Jerusalem and Solomon's Temple.

A. Purpose (Ch 1:1-12) 
B. Source (Ch 1:13-18)

A. Outworking & Characteristics  (Ch 1:19-5:6) 

A. Results (Ch 5:7-20) 

Probably one of the most debated verses in all of the Bible is James 2:24' Ye see then how that by works a man is justified, and not by faith only.'  The instant issue is when comparing it to Paul's statements in Romans 3:28 'Therefore we conclude that a man is justified by faith without the deeds of the law' and Ephesians 2:8 'For by grace are ye saved through faith; and that not of yourselves: it is the gift of God.'

When compared, they superficially seem to be contradicting one another.  James' statement seems to declare that works must accompany one's faith in order to be saved, ie justified before God.  While Paul emphatically says that faith alone results in salvation, ie justification before God.  The apparent contradiction can easily be resolved if one understands the context and purpose behind each letter. 

James' epistle was very likely the first to be written of all the New Testament books around 46-49 AD.  This letter is addressed to a strictly Jewish audience that has come to faith in their Messiah, Jesus Christ.  These conversts had transitioned out of the Mosaic Covenant  and into the recently established New Covenant.  Every NT reader would see that there were many struggles within the Church on the role of circumcision and old dietary retrictions.  The Judaizers advocated that keeping the Law was necessary for salvation on top of their Faith in Jesus' sacrifice and resurrection.  However on the other side of the pendulum were new believers that took a very liberatarian approach to new faith.  This is James' purpose to his letter. New believers were playing loose and fast with the security of salvation.  It's easy to imagine someone thinking that since they're saved, why would they need to be concerned about their behavior if their faith has wrapped it up.  So James' focusses on the Liberatarians who believe their conduct is irrelevant post-salvation, while Paul focusses on the Legalists who teach works are neccessary prior to salvation.  

When  individuals use James 2:24 as a proof text that works are needed for salvation, ask them to reconcile it with Jesus' own words in John 3:16 'For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.'  This is not as a means of winning the debate, but simply pointing out that Jesus never included works when He delared the Gospel.