140215-1225 EST
If you reference wallypiper's link and go to
http://www.fenwalcontrols.com/utcfs/ws-375/Assets/DAF_install_vert.pdf , then the wiring of the likely sensor is shown. See page 2 figure 3. The description in post 1 of this thread is of the two wire wiring without the endpoint resistor, and the sensors are normally open below the threshold temperature. Since the normally open sensors are in parallel this is a positive logic inclusive OR circuit.
That 120 V or thereabouts is measured on both the white and black wires could mean that there is no load on the output of this circuit, and that capacitive coupling from one wire to the other produces about 120 V on a high impedance meter. Whether capacitive coupling is producing one of the 120 V readings can be determined with a 25 W 120 V test light.
If the sensors are really a normally closed contact at room temperature and wired in series (lower left circuit), then more clarity is need on the circuit wiring to the sensors. If normally closed contacts are wired in series, then this is still an inclusive OR circuit, but using negative logic.
Inclusive OR means the output of the OR circuit is TRUE if any one or more inputs are TRUE, and only FALSE if all inputs are FALSE. An exclusive OR (XOR) logical function can only be defined for two inputs. The XOR output is TRUE if one or the other input is TRUE, and is FALSE if both inputs are FALSE or if both inputs are TRUE.
One needs to find out where the temperature sensing network terminates, and what it is controlling. Does it directly control an alarm bell and/or light, or does it connect to some alarm system.
.