Chuck Smith discusses the relationship between Christ and the Law and Prophets, emphasizing that Jesus came to fulfill the prophecies and the Law, which includes moral, judicial, and ceremonial aspects. He explains that while the Law cannot make one righteous or forgive sins, it serves to reveal sin and our helplessness, ultimately leading us to Christ. Smith also highlights that grace empowers believers to uphold the Law, as God writes His laws on our hearts, transforming our nature to desire Him. The sermon underscores the importance of understanding the Old Testament in light of Christ's fulfillment and the believer's ongoing relationship with the Law.