  In this paper a property of the multi-agent consensus dynamics that relates
the failure of links in the network to jump discontinuities in the derivatives
of the output responses of the nodes is derived and verified analytically. At
the next step, an algorithm for sensor placement is proposed, which would
enable the designer to detect and isolate any link failures across the network
based on the observed jump discontinuities in the derivatives of the responses
of a subset of nodes. These results are explained through elaborative examples.
