[Smeared Cupcakes] Kai Orders Forty Decorated Cupcakes from Liu's Bakery

[Smeared cupcakes] Kai orders forty decorated cupcakes from Liu's bakery next door to be sold in his restaurant. During delivery, Lui trips and the box tips over. When Kai opens the box to inspect the cupcakes, the frosted decorations on the cupcakes are smeared.
-Must Kai accept the cupcakes?

A) Yes, if they are still sellable, he must perform under the terms of the contract.
B) No, since the goods are partially destroyed, Kai may treat the contract as void.
C) No, but he must provide Lui with time to cure.
D) Yes, unless the contract specifically states otherwise.
E) No, since the goods are partially destroyed, Lui may treat the contract as void.