What is the Meaning & Definition of fungibility

Something is considered expendable when it has the characteristic of consuming due to its use. Thus, the fungibility of a good refers to the deterioration or wear something as a result of its use. In this way, gasoline, money or food are clear examples of expendable, since to make use of them disappear, are consumed or transformed. On the contrary, a good is non-expendable when it is not possible that it be replaced by another identical or equivalent (an original painting, a book with a dedication and everything that has a unique and unrepeatable character). While the fungible has no individuality (can be changed by something of the same gender and the same amount), the infungible does have a unique dimension and it is impossible to exchange it for something similar. The idea of fungibility implies that there is a relationship of equivalence between two different things but that they have identical value and are perfectly interchangeable between themselves (for example, a new dollar bill worth same as old one).

Fungibility in the field of law

In the sphere of civil law the nature of the goods has relevance to determine the assets of an individual and the obligations on them. From the point of view of the right to a good is everything that has a value or has a certain utility. As a result, there are two types of goods: those who consume and which not. The first are fungible and are, for example, everything that is paid or transfers to be consumed. In this way, the possession of an action for an entity, the loans of something else or a house inhabited in conditions of usufruct are concrete examples of goods that are subject to the fungibility.

Fungibility of money

Money is a good which, by definition, has an expendable character. If someone pays someone $100, no matter you the combination of tickets at the time of receiving (five of twenty dollars or two of fifty), $100 again, because the only thing relevant is the return of the amount of borrowed money.
The fact that money is fungible makes it a well singular as it affects all economic operations: deposits, loans, savings plans, or simply buy something with money. Thus, the fungibility of money has consequences not only as a good that is consumed but also in the legal field (are very different legal acts where there is an economic transaction).
The fungibility of money with respect to things is based on the market value having a thing.