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The meaning of the word "party" which means "people on the same side" is much much older than the meaning of the word "party" which means "a gathering for recreation." Over four hundred years older. So your question is backwards.

The word "party" comes from the verb "to part", which means to divide. If a group of people are parted over a dipute into one group who is for and another group which was against, each side was called a party. The earliest use of the word in this sense comes from 1295. It is the meaning used when describing political groups, or litigants in a lawsuit, or people engaged in contracts. From this use it came to be used for groups of people in different situations (like work parties or hunting parties) until finally it was used (for the first recorded time, in 1716) to describe a group of people who joined together to have a good time. At first these were described as "parties of pleasure", but eventually they just became parties.

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Q: Why are political groups called parties since they are not festivities?
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