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
(1) if the loss is total the contract is avoided; and
(2) 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.
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