It is the party that does not have current ruling power. For example, in the British Government the two parties are the House of Commons and the House of Lords. The House of Commons is the ruling party and the House of Lords is the party out of power. Same thing if you were using the American system as well. Currently, the Liberal party would be the majority party, thus the party in power, and the Republican party would be the party out of power. The main reason the party out of power is there is to keep the ruling party under control. Though they do not have any real power or ability to keep a law from passing, they can pass on some influence for their point of view, thus keeping the government semi-balanced.
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The head of a political party is known as a party leader. Some examples are a President, prime minister, and general secretary.
In 2014, the party in power in Queensland is the LNP, which is the Liberal-National Party coalition.
Republican Party
NDP:)
The party in power is whatever political party the President is affiliated with. Currently, the President is from the democratic party.