Final answer:
The case of Marbury v. Madison established the principle of judicial review, affirming the Supreme Court's power to declare congressional acts unconstitutional and involved parties William Marbury and James Madison.
Step-by-step explanation:
The case of Marbury v. Madison involved William Marbury, who had been appointed as a justice of the peace in the District of Columbia by President John Adams but never received his commission. Marbury petitioned the Supreme Court for an order directing James Madison, Jefferson's secretary of state, to deliver the commission. The Chief Justice at the time, John Marshall, found that while Marbury had a right to his commission, the Supreme Court did not have the authority to issue the order because the Judiciary Act of 1789, which would have given them that power, was inconsistent with the Constitution. Hence, the act was declared unconstitutional. This ruling established the principle of judicial review, giving the Supreme Court the power to review and nullify actions of Congress and the president if they are unconstitutional.