PROPERTY AND MODES OF ACQUIRING OWNERSHIP

THING - A thing is generally understood to be any object that exists and capable of
satisfying some human needs. It includes both objects that are already possessed or
owned, and those that are susceptible of appropriation.

PROPERTY - Property refers to anything which is already the object of appropriation

or is found in the possession of man.

The Civil Code uses the terms interchangeably and synonymously. However there are
things which are not susceptible of appropriation and they are not included in the
concept of property.

The requisites of property are the following:

1. Utility or the capacity to satisfy some human wants;

Ex. Food, shelter or clothing
2. Substantivity or individuality or the quality of having existence apart from other
things;
Ex. Parts of the human body, such as the hair, blood and teeth cannot exists by
themselves independent of the body, they become property when only separated
from the bodyof the person to whom they belong.
3. Approvability or the susceptibility of being possessed by men.
Ex. Common things, such as sunlight, air or ocean, these are not capable of
appropriation and their entirety as such although they may be appropriated
under certain conditions in a limited way. For instance, electricity, oxygen, water
and thereby become property in law.

There is also a things with no owner because it has not yet been appropriated – Res Nullius

Such as wild animals, or hidden treasure, or because it has been lost or abandoned by
the owner. It constitutes as property as long as it is susceptible of being possessed by
the use of man.

There is also things that cannot be considered as property as when they are not susceptible of
appropriation because of physical impossibility.

Such as the sun, moon, starts and other heavenly bodies. Or because of legal
impossibility such as the human body, while the person is alive as it is outside the
commerce of men, however, under certain conditions, the body of a person or parts
thereof may be the subject of a contract. The human body is not a property, it is neither
real nor personal property, whether alive or dead, it is not even a property at all, in that
it generally cannot be appropriated. While a human being is alive, he cannot as such be
the object of a contract for he is considered as outside the commerce of man. He may
donate part of his blood, and may even sell parts of his hair, but he cannot sell his body.
Under RA 7170 or the Organ Donation Act of 1991, donation of all or a part of human
body may only occur after a person’s death, that is the irreversible cessation of
circulatory and respiratory functions or the irreversible cessation of all functions of the
entire brain, including the brain system.

Classification of Things:

a) res nullius (belonging to no one)

-not yet been appropriated

-ex: wild animals; pebbles on the seashore

b) res communes (belonging to everyone)

-use and enjoyment are given to all of mankind

-ex: air, wind, sunlight

c) res alicujus (belonging to someone)

-objects, tangible or intangible, which are owned privately, either in a collective

or individual capacity

-ex: book;shares of stock

REAL PROPERTY FROM PERSONAL PROPERTY

ARTICLE 414. All things which are or may be the object of appropriation are
considered either:

(1) Immovable or real property; or

(2) Movable or personal property.

o The classification of real property and personal property under Art. 414, is based
on the nature of the thing itself or in its mobility or immobility.
o Generally, real properties are things which are permanently or intended to be
permanently attached or fixed to another thing or cannot be transferred from
place to place or if they can be transfer, the transfer cannot be done without
injury or damaged to the immovable to which they are attached. Otherwise they
are personal property.
o The importance of the classification of real property from personal property is
because in criminal law, usurpation of property can take place only with respect
to real property.
Ex. Robbery or theft can committed only against personal property.
o In procedure, actions concerning real property or real actions are brought in the
original trial court with the property or any part thereof lies. Actions involving
personal property, on the other hand, are brought in the court where the
 defendant or any of its defendant’s resides or may be found or plaintiff or any of
the plaintiff’s resides or may be found at the election of the plaintiff.
o An action for the recovery of real property may be forcible entry or unlawful
detainer; while in personal property, we have the provisional remedy of replevin
or manual delivery of personal property.
o In contracts, real property is the subject matter of real mortgage or anti-crisis;
while in personal property, it is the subject matter of simple loan or mutuum,
voluntary deposits, pledge and chattel mortgage.
o For purposes of donation, Art. 748 provides that the donation of a movable may
be made orally or in writing, an oral donation requires the simultaneous delivery
of the thing or the document representing the right donated. If the value of the
personal property donated exceeds Php5,000, the donation and the acceptance
shall be made in writing, otherwise, the donation shall be void.
While Art. 479 of the CC provides that in order for the donation of an
immovable property be valid, it must be made in a public document, specifying
therein the property donated and the value of charges which the done must
satisfy. The acceptance may be made in the same donation or in separate public
document, but it shall not take effect unless it is done during the lifetime of the
donor. If the acceptance is made in a separate document, the donor shall be
notified in an authentic form and the steps shall be noted in both instruments.
o For purposes of prescription, ownership over immovable is acquired by
prescription although there is bad faith in 30 years (Art. 1137 of the NCC). For
movable, it is 8 years (Art. 1132).

What are the immovable properties?

IMMOVABLE PROPERTY

Art. 415. The following are immovable property:

(1) Land, buildings, roads and constructions of all kinds adhered to the soil;

 Land – immovable property by definition and nature

 Buildings – they are immovable, provided, it is more or less on a permanent
structure, independent of, and regardless of the ownership of the land on which
it is erected, since the law makes no distinction. A building is always an
immovable, whether built in one’s own land or rented. A structure which is
merely superimposed on and not adhered to the soil, for instance barong-barong,
in which case it is considered as movable property. A house or building is
immovable property, but once a house is demolished its character as an
immovable ceases because a house is classified as an immovable property by
reason of its adherence to the soil on which it is built.

A house is classified as immovable property by reason of its adherence to

the soil on which it is built (Art. 415, par. 1, Civil Code). This classification holds
true regardless of the fact that the house may be situated on land belonging to a
different owner. But once the house is demolished, as in this case, it ceases to
exist as such and hence its character as an immovable likewise ceases. It should
be noted that the complaint here is for recovery of damages (Bicerra v. Teneza, 6
SCRA 649 (1962).

A building by itself is a real or immovable property distinct from the land

on which it is constructed; therefore, it can be a separate subject of contracts. A
building by itself may be mortgaged, apart from the land on which it is build.
Thus, while it is true that a mortgage of land necessarily includes, in the absence
of stipulation of the improvements thereon, buildings, still a building by itself
may be mortgaged apart from the land on which it has been built. Such a
mortgage would still be a real estate mortgage for the building would still be
considered immovable property even if dealt with separately and apart from the
land (Leung Yee v. Strong Machinery Co., 37 Phil. 644 (1918).

The sale of a factory building made of strong materials over which a

chattel mortgaged was executed, was annotated in the chattel mortgage registry.
The SC held that the building of strong material is real property and the mere
fact that the parties seem to have dealt with it separately and apart from the land
on which it stood in no wise change its character as real property.

What is the effect of real property treated by parties as personal property?

A building is an immovable irrespective of whether or not said structure

and the land which it is adhered to belong to the same owner or whether the
building is erected by the owner of the land or by usufractory or lessee. Hence, a
valid real estate mortgaged can be constituted on the building erected on the
land belonging to other.

The contracting parties stipulate that a real property be considered as

personal, after agreeing in such stipulation, they are consequently estopped from
claiming otherwise. If the parties will treat a building as a movable, as between
them, they are stopped from alleging the contrary. The character of the building
as a real property is not altered because the same is provided by law, and cannot
be changed by mere agreement of the parties. The parties are simply barred from
questioning the validity of the agreement they voluntarily entered into.
However, this will not apply to strangers to the said contract. As far as third
persons who are not parties to the contract, the house or building is considered
as immovable property. The Registry of Deeds may not use the registration of a
chattel mortgage on the pretext that the subject matter thereof is not a personal
property, for the duties of the Registry of Deeds in respect to the registration of
chattel mortgage is purely ministerial character.
 The parties to a contract of chattel mortgage may by agreement treat
personal that by in its nature would be real. Such as, leasehold drive and
building, a house of mixed materials, which by its very nature is considered real
property. The chattel mortgage is not binding on a third person, it is good only
insofar as to the contracting parties are concerned, with respect to a third person
who are not parties to the contract, the house is considered as immovable
property.

 Constructions – A chattel mortgage on house built on rented land

The law makes no distinction as to the ownership of the land on which the house is
built.

The house may thus be considered movable or personal property subject of a chattel
mortgage and the parties thereto as estopped later from claiming otherwise.

 Constructions adhered to the soil, such as fruits and constructions, they are
considered integral parts of the land.

To be immovable, the construction must be attached permanently to the land and it

must not be of provisional or temporary character but fixed or integral. Example of this
is, constructions of railroads. A wall or fence is to be regarded as construction by
incorporation. It is immovable as long as there is an intent to attach it permanently
although it is merely made to rest on the land. (15:10)

(2) Trees, plants, and growing fruits, while they are attached to the land or form an
integral part of an immovable;

 Growing fruits are movables in other laws, such as the chattel mortgage law
 These trees, plants, and growing fruits are immovable property while they are
attached to the land or form an integral part of an immovable on the theory that
they derive sustenance from the soil. Once they are cut off or uprooted, whether
for firewood, lumber or other use. They become movable property.
 They are considered immovable by nature if they are spontaneous product of the
soil and by incorporation if they are produced on lands of any kind through
cultivation or labor.
 But for certain purposes, and while still attached to the soil, growing fruits may
exceptionally be treated as personal property.
 Un-gathered fruits are considered personal for purposes of sale of whole or part
of the crops. Under the chattel mortgage law, un-gathered fruits have the nature
of personal property for purposes of attachment and execution.
(3) Everything attached to an immovable in a fixed manner, in such a way that it
cannot be separated therefrom without breaking the material or deterioration of the
object;

 It is the result which is important – That it cannot be removed without causing

damage.
 There is no requirement that the attachment be done by the owner.
 The attachment must be such that it cannot be separated from the immovable
without breaking the material or deterioration of the object such as walls, canals,
aqueducts. They are immovable by incorporation or attachment.
 The intent to attach permanently is essential.
 Permanent annexation they become part of the land and they lose their identity
as movables or chattels.
 Physical attachment without intent of permanent annexation is not itself enough.
 Art 415 par 3 should be distinguish from Art 415 par 4.

(4) Statues, reliefs, paintings, or other objects for use or ornamentation, placed in
buildings or on lands by the owner of the immovable in such a manner that it reveals
the intention to attach them permanently to the tenements;

 The incorporation must be made by the owner of the immovable, either

personally or through an agent.
 Separation is possible without deterioration of the immovable or destruction of
the material.
 The requisites of immobilization are:
 It is an object of ornamentation or object of use
 The object is placed on a building or land
 The installation was made by the owner of the building or the land
 If placed by a person not the owner of the immovable such as a
lease or usufructuary, the object will not attain the character of
immovable unless such person acts as an agent of the owner.
 It is attached in such a manner that it reveals an intention to attach it permanently.
 The intent to attach permanently is essential.
 They are immovable both by incorporation and attachment and by
destination.
 The main consideration is the intention to attach the object
permanently to the immovable.

(5) Machinery, receptacles, instruments or implements intended by the owner of the

tenement for an industry or works which may be carried on in a building or on a
piece of land, and which tend directly to meet the needs of the said industry or
works;

Requisites for immobilization:

 i. The object is either a machinery, receptacles, instruments or implements for an
industry or work;
ii. The object is installed in a tenement;
iii. The installation is by the owner of the tenement;
iv. Industries or work are carried on in the tenement; and
v. The objects carry out directly the industry or work

 The machineries and so forth must be placed by the owner of the tenement or his
agent.
 Machinery which is movable by nature, only becomes immobilized when placed on
a plant by the owner of the property or plant. But not so if placed by a tenant,
usufructuary or person having only temporary right unless such person acted as an
agent of the owner, as when the tenant places the machineries and so forth pursuant
to a contract that it shall belong to the owner.
 However, such rule applies only to the tenant, his assignees and creditors who had
sufficient notice of the agreement or the stipulation.
 Although the machineries are essentially and principally elements of the industry,
they can be a proper subject of a replevin if the parties have treated the same as
personal property.
 The machineries and so on must tend the needs of the industry or work.
 Movable equipment to be immobilized must first be essential and principal elements
of the industry or works without which such industry or work would be unable to
function or carry on the industrial purpose for which it was established.
 A machinery immobilized by destination – Example: Those machinery, instruments
and implements delivered by the owner of the tenement to tenant for the cultivation
of the same should be considered as immobilized for they fulfill the condition of
being intended for an industry or works being carried on thereon.
 Where the movables are merely incidental – Those movables which become
immobilized by destination because they are essential and principal elements in the
industry must be distinguished from those which may not be considered
immobilized because they are merely incidental.
 The attachment or incorporation to immovable is not essential.
 As long as they are utilized or still needed in the industry, they continue to
immobilize although temporary separated from the tenement.
 A chattel mortgage on an immobilized machineries or equipment – The fact that the
disputed machineries were heavy, molted or cemented on a real property
mortgaged does not make them ipso facto immovable under Art 415 par 3 and 5, as
the parties’ intent must be looked into.
 It is considered personal property as when they are used as security for a payment
of an obligation over which a chattel mortgage is executed.

(6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar
nature, in case their owner has placed them or preserves them with the intention to
have them permanently attached to the land, and forming a permanent part of it; the
animals in these places are included;

Requisites:
i. The structures placed by the owner; and
ii. The installation must be with an intention to have them permanently attached
and forming a part of it.

 The construction mentioned must permanently form part of the land and so
intended by the owner. However, such animals can by their nature remove from
place to place and without injury, they are to be regarded as personal property in
case of alienation and for purposes of criminal law. They may thus be an object of
theft or robbery.

(7) Fertilizer actually used on a piece of land;

 Fertilizers are immovable property since it becomes an integral part of the soil.
 They are immovable by destination and are immovable if they are actually used
because it is only then when they form part of the land that they become immovable
property.
 Hence, fertilizers kept in the warehouse are not immovable.

(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed,
and waters either running or stagnant;

 They remain unsevered from the soil.

 But when extracted, they become movables for they are no longer mines but
minerals.

(9) Docks and structures which, though floating, are intended by their nature and
object to remain at a fixed place on a river, lake, or coast;

 Though floating, if by their nature they are intended to remain at a fixed palce on a
river, lake or coast

(10) Contracts for public works, and servitudes and other real rights over immovable
property.

Note: The classification is exclusive.

Classifications of real or immovable property are:

 a. By Nature — those which by their essence and nature are immovable or cannot be
moved from one place to another, such as lands and roads in paragraph 1 of
Article 415 and mines, quarries and slug dumps in paragraph 8 of Article 415;
b. By Incorporation — those which are treated as immovable by reason of their
attachment or incorporation to an immovable in such manner as to be an integral
part thereof, such as buildings and constructions of all kinds adhered to the soil
mentioned in paragraph 1 of Article 415; trees, plants and growing fruits
mentioned in paragraph 2 of Article 415 while they are still attached to the land
or form an integral part of an immovable; and those that are attached to an
immovable in the manner provided for in paragraph 3 of Article 415;
c. By Destination — those which are essentially movable, but by the purpose for
which they have been placed in an immovable, partake of the nature of the latter
because of the added utility derived therefrom, such as those mentioned in
paragraphs 4, 5, 6, 7 and 9 of Article 415; and
d. By Analogy — those that are classified by express provision of law which are
regarded as united to the immovable property; those are mentioned in
paragraph 10 of Article 415.

Board of Assessment Appeals vs Manila Electric Co.

G.R. No. L-15334 January 31, 1964

Facts:
In 1902, Philippine Commission enacted Act No. 484 which authorized the Municipal
Board of Manila to grant a franchise to construct, maintain and operate an electric street
railway and electric light, heat and power system in the City of Manila and its suburbs
to the person or persons making the most favorable bid. Charles M. Swift was awarded
the said franchise, the terms and conditions of which were embodied in Ordinance No.
44 in 1903.

In 1955, petitioner City Assessor of Quezon City declared the aforesaid steel towers for
real property tax under Tax declaration Nos. 31992 and 15549. After denying
respondent's petition to cancel these declarations, an appeal was taken by respondent to
the Board of Assessment Appeals of Quezon City, which required respondent to pay
the amount of P11,651.86 as real property tax on the said steel towers for the years 1952
to 1956. Respondent paid the amount under protest, and filed a petition for review in
the CTA which rendered a decision on December 29, 1958, ordering the cancellation of
the said tax declarations and the petitioner City Treasurer of Quezon City to refund to
the respondent the sum of P11,651.86. The motion for reconsideration having been
denied, on April 22, 1959, the instant petition for review was filed.

Issue:
Whether the aforesaid steel towers is a real property, making petitioners liable for real
property tax.
Ruling:
Article 415 of the Civil Code does, by stating the following are immovable property:
(1) Land, buildings, roads, and constructions of all kinds adhered to the soil;
xxx     xxx     xxx

(3) Everything attached to an immovable in a fixed manner, in such a way that it cannot
be separated therefrom without breaking the material or deterioration of the object;
xxx     xxx     xxx

(5) Machinery, receptacles, instruments or implements intended by the owner of the

tenement for an industry or works which may be carried in a building or on a piece of
land, and which tends directly to meet the needs of the said industry or works;

The steel towers or supports in question, do not come within the objects mentioned in
paragraph 1, because they do not constitute buildings or constructions adhered to the
soil. They are not construction analogous to buildings nor adhering to the soil. As per
description, given by the lower court, they are removable and merely attached to a
square metal frame by means of bolts, which when unscrewed could easily be
dismantled and moved from place to place.

They cannot be included under paragraph 3, as they are not attached to an immovable
in a fixed manner, and they can be separated without breaking the material or causing
deterioration upon the object to which they are attached. Each of these steel towers or
supports consists of steel bars or metal strips, joined together by means of bolts, which
can be disassembled by unscrewing the bolts and reassembled by screwing the same.
These steel towers or supports do not also fall under paragraph 5, for they are not
machineries, receptacles, instruments or implements, and even if they were, they are
not intended for industry or works on the land. Petitioner is not engaged in an industry
or works in the land in which the steel supports or towers are constructed.

MERALCO SECURITIES INDUSTRIAL CORPORATION

vs. CENTRAL BOARD OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT
APPEALS OF LAGUNA and PROVINCIAL ASSESSOR OF LAGUNA
G.R. No. L-46245 May 31, 1982

Facts:
Pursuant to a pipeline concession issued under the Petroleum Act of 1949, Republic Act
No. 387, Meralco Securities installed from Batangas to Manila a pipeline system
consisting of cylindrical steel pipes joined together and buried not less than one meter
below the surface along the shoulder of the public highway. The pipes are embedded in
the soil and are firmly and solidly welded together so as to preclude breakage or
damage thereto and prevent leakage or seepage of the oil. The valves are welded to the
pipes so as to make the pipeline system one single piece of property from end to end.

In order to repair, replace, remove or transfer segments of the pipeline, the pipes have
to be cold-cut by means of a rotary hard-metal pipe-cutter after digging or excavating
them out of the ground where they are buried. In points where the pipeline traversed
rivers or creeks, the pipes were laid beneath the bed thereof. Hence, the pipes are
permanently attached to the land.

Pursuant to the Assessment Law, Commonwealth Act No. 470, the provincial assessor
of Laguna treated the pipeline as real property and issued tax declarations, containing
the assessed values of portions of the pipeline.

Meralco appealed the assessments to the defendants, but the latter ruled that pipeline is
subject to realty tax. The defendants argued that the pipeline is subject to realty tax
because they are contemplated in Assessment Law and Real Property Tax Code; that
they do not fall within the category of property exempt from realty tax under those
laws; that Articles 415 & 416 of the Civil Code, defining real and personal property have
no applications to this case because these pipes are constructions adhered to soil and
things attached to the land in a fixed manner, and that Meralco Securities is not exempt
from realty tax under petroleum law.

Meralco insists that its pipeline is not subject to realty tax because it is not real property
within the meaning of Art. 415.

Issue:
Whether the aforementioned pipelines are subject to realty tax.

Ruling:
Yes, the pipelines are subject to realty tax.

Section 2 of the Assessment Law provides that the realty tax is due “on real property,
including land, buildings, machinery, and other improvements.” This provision is
reproduced with some modification in Section 38, Real Property Tax Code, which
provides that “there shall be levied, assessed, and collected xxx annual ad valorem tax
on real property such as land, buildings, machinery, and other improvements affixed or
attached to real property xxx.”

It is incontestable that the pipeline of Meralco Securities does not fall within any of the
classes of exempt real property enumerated in section 3 of the Assessment Law and
section 40 of the Real Property Tax Code.

Pipeline means a line of pipe connected to pumps, valves and control devices for
conveying liquids, gases or finely divided solids. It is a line of pipe running upon or in
the earth, carrying with it the right to the use of the soil in which it is placed.
Article 415[l] and [3] provides that real property may consist of constructions of all
kinds adhered to the soil and everything attached to an immovable in a fixed manner, in
such a way that it cannot be separated therefrom without breaking the material or
deterioration of the object.

The pipeline system in question is indubitably a construction adhering to the soil. It is

attached to the land in such a way that it cannot be separated therefrom without
dismantling the steel pipes which were welded to form the pipeline.

Insofar as the pipeline uses valves, pumps and control devices to maintain the flow of
oil, it is in a sense machinery within the meaning of the Real Property Tax Code.

It should be borne in mind that what are being characterized as real property are not
the steel pipes but the pipeline system as a whole. Meralco Securities has apparently
two pipeline systems.

Meralco Securities argues that the realty tax is a local tax or levy and not a tax of general
application. This argument is untenable because the realty tax has always been imposed
by the lawmaking body and later by the President of the Philippines in the exercise of
his lawmaking powers.

The realty tax is enforced throughout the Philippines and not merely in a particular
municipality or city but the proceeds of the tax accrue to the province, city, municipality
and barrio where the realty taxed is situated (Sec. 86, P.D. No. 464). In contrast, a local
tax is imposed by the municipal or city council by virtue of the Local Tax Code,
Presidential Decree No. 231, which took effect on July 1, 1973 (69 O.G. 6197).
The Court held that the CBAA did not act with grave abuse of discretion, did not
commit any error of law and acted within its jurisdiction in sustaining the holding of
the provincial assessor and the local board of assessment appeals that Meralco
Securities’ pipeline system in Laguna is subject to realty tax.
Real rights
 Rights which are enforceable against the whole world
 For a real right to be considered real property, the real right must be over an
immovable property.
 Example: The real right of the ownership of the land is considered real property,
while the real right of ownership over a bag is considered personal property.
 A real estate mortgage is a real right and a real property by itself.
 If the subject matter of a real right is a personal property, such real right is
classified as personal property.

PERSONAL PROPERTY

Art. 416. The following things are deemed to be personal property:

1. Those movables susceptible of appropriation which are not included in the
preceding article;
2. Real property which by any special provision of law is considered as personal
property;
3. Forces of nature which are brought under control by science; and
4. In general, all things which can be transported from place to place without
impairment of the real property to which they are fixed.

Art. 417. The following are also considered as personal property:

1. Obligations and actions which have for their object movables or demandable
sums; and
2. Shares of stock of agricultural, commercial and industrial entities, although
they may have real estate.

In general, all things susceptible of appropriation which can be transported from place
to place without impairment of real property to which they are fixed and are not
included in the enumeration in Art 415 are classified as personal or movable properties.

Classes of movable or personal property

i. Property not included in Art 415;
ii. Real property considered as personal property by special provision of law;
iii. Forces of nature which are brought under the control by science such as gas and
electricity;
iv. In general, all movable things that can be transported from place to place
without impairment of the real property to which they are fixed;
v. Obligations and actions which have for their object movables or demandable
sums
vi. Shares of stock of agricultural, commercial and industrial entities, although they
may have real estate;
vii. Obligations and actions – these are real personal rights.
 Material rights are called corporeal property
 Incorporeal property refers to rights – intellectual property such as
copyrights, patents or trademarks.

Art. 418. Movable property is either consumable or nonconsumable. To the first class
belong those movables which cannot be used in a manner appropriate to their nature
without their being consumed; to the second class belong all the others.

The classification of property into consumable or non-consumable applies only to

movable property and does not find application to immovable property. In addition,
such classification does not find application to all kinds of movable property but only to
those which are corporeal in nature. As defined, a consumable is a movable which
cannot be used in a manner appropriate to its nature without itself being consumed. For
example, a cigarette cannot be used in a manner appropriate to its nature, i.e., for
smoking, without itself being consumed. A non-consumable, on the other hand, is a
movable which can be used in a manner appropriate to its nature without itself being
consumed. An example of a non-consumable is table which can be used in the manner
appropriate to its nature and, yet, it will not be consumed.

Distinguished from Fungible and Non-Fungible

Aside from the classification provided in Article 418 of the Civil Code, movables may
likewise be classified into fungibles or nonfungibles. In classifying movables into
consumable or non-consumable, the basis of the classification is the very nature of the
corporeal object itself. On the other hand, the basis of the classification of movables into
fungible or non-fungible is simply the intention of the parties. The movable is classified
as fungible if, by the intention of the parties, it can be replaced by another of the same
kind; otherwise, it is a nonfungible.