The phrase khassan kana aw ʿamman resolves an important confusion: haqiqah is not the same as khass. “This tree” may literally designate a particular tree, whereas “all trees” literally embraces a wider class.
“This lion” — a literal use concerning a particular lion.
“All lions” — a literal use whose scope is general.
The first division concerns extent of reference; this second division concerns whether the sense intended is the assigned one.