The expendable and non-expendable goods They are linked to the ability or inability of these to exchange. Expendable goods are objects that can be exchanged for others without detriment to the owner; one thing works the same way as another in these cases.
This happens because they are similar objects in their essence, so if the quantity and quality are maintained, there is no damage by exchanging one for the other. They are similar but not identical elements, although they are of the same gender.
As for non-expendable goods, the opposite is true. They are not interchangeable and are essentially unique. One cannot be replaced by another without detriment to the owner; the owner does not serve the same thing as another.
In ancient Rome they were called genus and they were objects or goods identifiable by their gender re quae number, pondere, measurave constant. This means "those objects that have value in terms of weight, quantity or measure".
Both goods, fungible and non-fungible, are essential for contracts and, above all, their distinction is basic. For example, these goods must be identified in mutual contracts that can only be carried out with expendable goods, or in the bailment, which is a contract made on non-expendable goods..
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To distinguish between expendable and non-expendable goods, it is essential to understand the meaning of the two concepts. Expendable goods are objects or things that are worn, destroyed and deteriorate when used. In the Spanish legal system this aspect of property is regulated in article 337.
Other legal systems regulate the differences between fungible and non-fungible assets differently. The Argentine law, in its article 2324, determines as fungible goods those that are substitutable by others of equal quality and quantity. For its part, the Mexican law considers them goods that can be replaced.
In general, expendable goods are characterized by their gender, weight and measure, being interchangeable for others. They differ from non-expendable because they do not allow exchanges, since they are original and irreplaceable.
One of the most important differences is that compensation can be made when a specific consumable item is damaged; In the case of non-expendable goods, no compensation is allowed because they are not replaceable.
Consumables are typically equated with consumables, although some consumables are not consumables.
These are not absolute terms, but relative. This means that, although certain goods are often referred to as fungible or non-fungible in the market, the truth is that in some cases the non-fungible can be considered fungible, and vice versa.
Within the fungible goods money is always mentioned; the Civil Code does not include it within fungible assets specifically, but it is implicit.
Money is easily liquidated against other types of goods, and that gives it a different character. Fungibility does not mean liquidity, and vice versa.
For example, diamonds can be easily purchased and offered on the market, since their trade is liquid. However, individual diamonds, being unique, are not interchangeable; therefore diamonds are not expendable.
Tunisian dinar banknotes, for example, are interchangeable, and therefore fungible. However, in Spain they cannot be easily exchanged except in currency exchange services..
Expendables include money, oil, bonds, and sealed consumer items found on store shelves, such as boxes of cereal, oatmeal, and yogurt..
Expendables are classified as such if they have the same value and properties as other items. For example, in the case of money, a 10-euro bill has the same value as two 5-euro bills..
No two objects are identical, although there are objects of the same genre. That is, a kilo of potatoes is not the same as a kilo of apples, but it is equal to a kilo of potatoes of an equivalent quality..
Although some items qualify as expendable in certain cases, changing circumstances can change that status. For example, bonds must have the same value and the same limitations between lenders to be equal..
Altered consumer products, such as returned or opened packages, no longer have the same value as their unused peers and are therefore no longer expendable.
Some items, such as diamonds, are rarely expendable from the start; diamond quality varies widely between stones and almost no two are alike.
In contrast, non-expendable goods cannot be exchanged. For example, people are not expendable. If you buy tickets to a Britney Spears concert and Madonna shows up, you won't get indistinguishable good.
For example, a racing car is not interchangeable for another racing car, or a house for another, or earrings with an exclusive design for others, etc..
Non-expendable property is often unique (people, works of art, land, events), limited in time or place, source or accessibility, and generally - though not always - not essential to life.
In times of economic depression or difficulties in accessing consumer goods in general, the prices of non-expendable goods will rise considerably.
What happens is that a smaller group of buyers with high purchasing power will compete for them. Examples of this are works of art, antiques, luxury homes or access to levels of power.
It is clear that, although there are some references that can facilitate determining whether a good is fungible or not, there are also complex and confusing cases in which it is not so clear. Therefore, each situation must be studied carefully..
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