Effects of the contract when the thing sold has been lost

1. Loss of generic things

Entirely lost. If at the time the contract of sale is perfected, the thing which is the object of the contract has been entirely lost, the contract shall be without any effect. (Article 1493, Ibid.)

Partially lost. But if the thing should have been lost in part only, the buyer may choose between withdrawing from the contract and demanding the remaining part, paying its price in proportion to the total sum agreed upon. (Paragraph 2, Article 1493, Ibid.)

2. Loss of specific goods

Where the parties purport a sale of specific goods, and the goods without the knowledge of the seller have perished in part or have wholly or in a material part so deteriorated in quality as to be substantially changed in character, the buyer may at his option treat the sale:
1) As avoided; or
2) As valid in all of the existing goods or in so much thereof as have not deteriorated, and as binding the buyer to pay the agreed price for the goods in which the ownership will pass, if the sale was divisible. (Article 1494, Ibid.)