EXPENDABLE AND NON-EXPENDABLE GOODS: DIFFERENCES AND EXAMPLES - ARTE - 2025

The expendable and non - expendable property are linked to the ability or inability of these exchanged. Expendable goods are objects that can be exchanged for others without detriment to the owner; the owner serves the same thing 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. These 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 with another without detriment to the owner; the owner does not serve the same one thing as another.

In ancient Rome they were called genus and they were objects or goods unidentifiable by their gender re quae number, pondere, mensurave 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 that is made on non-expendable goods.

Differences between expendable and non-expendable property

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 wear out, are destroyed and deteriorate when used. The Spanish legal system regulates this aspect of property in article 337.

Other legal systems regulate differently the differences between fungible and non-fungible assets. 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 is possible 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.

Fungibility and infungibility of goods

These are not absolute terms, but relative. This means that, despite the fact that 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 as 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 liquidable 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 bought 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.

Examples of consumables

Expendables include cash, 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. In other words, 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, like diamonds, are rarely fungible from the start; Diamond quality varies widely between stones and almost no two are alike.

Examples of non-expendable property

In contrast, non-expendable goods cannot be exchanged. For example, people are not fungible. If you buy tickets to a Britney Spears concert and Madonna shows up, you won't get an 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 artwork, antiques, luxury homes, or access to power levels.

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.

References

1. US Customs and Borders. (2014). Fungible goods and materials. Cpb.gov
2. Cambridge Dictionary. Expendable Dictionary.cambridge.org
3. ITLaw Wiki. Fungible goods.
4. Investors Guide. Expendable I nvestorsguide.com
5. Wikipedia. Fungibility.