New York Laws
Part 6 - Breach, Repudiation and Excuse
2-613 - Casualty to Identified Goods.

(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.