2006 New York Code - 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.