N.Y. Uniform Commercial Code Law § 2-613: Casualty to Identified Goods

Section 2--613. Casualty to Identified Goods.

Where the contract requires for its performance goods identified when

the contract is made, and the goods suffer casualty without fault of

either party before the risk of loss passes to the buyer, or in a proper

case under a "no arrival, no sale" term (Section 2--324) then

(a) if the loss is total the contract is avoided; and

(b) if the loss is partial or the goods have so deteriorated as no

longer to conform to the contract the buyer may nevertheless demand

inspection and at his option either treat the contract as avoided or

accept the goods with due allowance from the contract price for the

deterioration or the deficiency in quantity but without further right

against the seller.