Parties or parties is the plural ( more than one ) form of party--
There are so many parties going on this weekend!
Children love to have ice cream at their birthday parties.
There are two main political parties in the United States.
There are many parties to this lawsuit.
Party's or party's ( rhymes with parties ) is the possessive ( belonging to ) form of party--
The party's platform includes health care reform.
The party's music was terrible, so we left.
The other party's lawyer was very aggressive.
Party's or party's may also be a contraction of "party is"-
The party's over.
This party's no fun.
Now that you know that, you can say--
"Both parties agreed that each party's speech should take five minutes."
Note--"parties" may also be used as the third person singular ( he, she, it ) form of the verb ( action word ) "party"--
He parties with us every Friday night.
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