Understanding legal terms can be tricky. One such term is “fungible things,” which has an important distinction from other forms of property. This article will explain the meaning of fungible things and provide some modern examples to really drive the point home.
What Are ‘Fungible Things’?
The legal definition of fungible things is any type of property that can be divided and interchanged with other pieces of the same property. It essentially means that you can swap one piece of property for another piece of the same quality, and it will be considered of equal value.
Examples of Fungible Things
One common example of fungible things is stocks and bonds. Shares of one company are typically identical to shares of another company, which means they can be freely exchanged without any loss of value. Other examples of fungible things include gold, silver, foreign currency, and grain. Each of these types of property can be divided up and traded with other units of the same type without losing any value in the exchange.
Key Takeaways
At its core, fungible things are any type of property that can be divided and interchanged without affecting the quality or value of the property. This differs from other forms of property, such as real estate or personal property, that cannot be divided or exchanged without affecting the value.