entity system – How “smart objects” are implemented and actually work?

I’m drafting my game and implementing small stuff in it, but hit a roadblock. You see, for my game I would like for different items to behave the same or to share behavior, for instance, some items can be picked up and dropped to the floor, some items can get damaged and be repair while some only can get damage (the player cannot repair the item), some items can be use for a variety of different purposes (fire arms as weapons, frying pan as cooking tool and as a weapon), some items can get wet while others can get wet, catch fire and spread it further (or not; this is a reference to systemic games) and so on.

In my mind, the behavior must exist in the object and be abstracted from the player/AI/Other items nevertheless I’m lacking experience on how to go about this and I think that beside implementing a behavior there must exist also code that knows how to interact with such behavior, but this approach feels odd IMHO. In any case, I was asking around and The Sims was thrown in a reply, searching on the web found Living with The Sims’ AI: 21 Tricks to Adopt for Your Game, the trick 5 reads:

Each object has a public interface that broadcasts its functionality
to actors in the game. This is called advertising data in The Sims,
and contains a list of possible actions and what motives they satisfy.

If reading this correctly, it means that “smart objects” have a standard interface that actors can access to, right? My guess is that this interface covers everything behavior/systemic-wise that could happen in the game and the “actors” have code implemented that allow them to make use of this advertised interface, right?