The appellant, Miloc Financial Solutions (Pty) Ltd, brought motion proceedings against Logistic Technologies (Pty) Ltd (as principal debtor) and various related entities and individuals as sureties. The claims arose from (a) a cession of the first respondent’s indebtedness to Standard Bank of South Africa Ltd, and (b) a loan agreement concluded on 6 May 2004. As part of settlement discussions, three share-sale agreements were concluded in July 2005 (two relating to Sigma Logistic Solutions shares and one relating to shares in Information Dynamics (Pty) Ltd and Logtek USA Inc). These agreements were intended to generate R7 million for Miloc in settlement of all indebtedness. The eleventh respondent paid R2 million, contending that the Sigma share purchase price of R1.5 million was fully paid and that Miloc was obliged to release the pledged Sigma shares so that he could raise funds to pay the remaining R3.5 million. Miloc refused to release the shares unless further guarantees were furnished, later purported to cancel the share-sale agreements, and then sought to enforce the original ceded bank debt and loan agreement. The respondents resisted liability, alleging reciprocity of obligations, breach by Miloc, and that the settlement agreements novated the original debts.