Fungible Things Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Fungible Things, written in plain English, along with examples of how it is used.
What is Fungible Things?
(n) Fungible Things are article, goods, produces etc which are formed in bulk groups and are dealt in bulk groups only. They are not dealt or used in single units. Eg. Food grain, Sand
History and Meaning of Fungible Things
Fungible things originated from the Latin word "fungi," which means "to perform." The term "fungible" refers to items that are interchangeable in commerce because they have similar value and can be exchanged for goods or money. For something to be considered fungible, it must be identical to other goods in its class, and its individual units cannot be differentiated from one another.
In today's markets, fungible goods are common, ranging from precious metals like gold or silver to agricultural products like wheat or corn. This term is prevalent in the legal industry and is often used to describe goods sold in bulk.
Examples of Fungible Things
Currencies - Coins and banknotes are equivalent to each other and have similar values, making them interchangeable in commerce.
Commodities - Crude oil, natural gas, and gold are examples of fungible goods, where the quality and quantity of each unit are the same, making them interchangeable in a market.
Grains - Wheat, rice, oats, and barley are also fungible items as they usually trade in futures and commodities markets in bulk amounts.
Legal Terms Similar to Fungible Things
Liquid assets - Cash, bank deposits, and marketable securities are assets that can be easily converted into cash without losing its value.
Non-fungible things - These are items that do not have identical properties and cannot be exchanged with another item of its class. For example, a car, a house, or a painting.
Indivisible goods - These are goods that are sold as a whole and cannot be divided into smaller units, such as real estate or an antique piece of furniture.