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The sensors were defective resulting in serious problems, including uncontrolled deceleration and loss of power. The buyer suffered substantial losses as a result, including the cost of inspections and replacement of parts. It sought to argue that the contract was formed on its business terms and sought to recover its losses from the seller. The seller argued that the contract was formed on its terms and that its liability was limited to repair, in accordance with its standard terms, which the buyer had accepted by taking delivery of the sensors; while the buyer argued that the seller's liability was unlimited (in accordance with its standard terms).

Seller will not deal with other bidders: Till a date, as specified in the letter of intent, or till such time as the letter of intent stands terminated, the seller is under an obligation not to deal with any other party in any respect whatsoever.

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