Funglibles are goods which are interchangeable, often sold or delivered
in bulk, since any one of them is as good as another. Fungible goods have
no distinguishing characteristics from others of like kind, such as grains
or oils, so that they can be easily replaced or substituted. When items
are sold by weight or number, that is an indication that they may be fungible
goods.
The following is an example of a state statute dealing with fungible
goods:
- "Unless the warehouse receipt otherwise provides, a warehouseman
must keep separate the goods covered by each receipt so as to permit at
all times identification and delivery of those goods except that different
lots of fungible goods may be commingled.
- Fungible goods so commingled are owned in common by the persons
entitled thereto and the warehouseman is severally liable to each owner
for that owner's share. Where because of overissue a mass of fungible goods
is insufficient to meet all the receipts which the warehouseman has issued
against it, the persons entitled include all holders to whom overissued
receipts have been duly negotiated."
Related Terms
Terms with 'Fungibles'
