FUNGIBILITY OF PROPERTY

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Property can be fungible or non-fungible. Fungibility is NOT the same as consumability. Consumability depends only on the nature of the thing itself but fungibility depends on contractual stipulations or on the nature of the thing itself.

Fungibility or non-fungibility only applies to movables, determined by the intention of the parties.

[1] Fungible things are those which, because of their nature or the will of the parties, are capable of being substituted by others of the same kind, NOT having a distinct individuality.

[2] Non-fungibile things are those which cannot be substituted for another. If parties have agreed that the same thing should be returned, it is not fungible.