[step:Prove by induction on complexity that $A \models p \iff \bar S \vdash p$]We prove by structural induction on the sentence $p$ of $\bar L$ that
\begin{align*}
A \models p &\iff \bar S \vdash p. \tag{$\star$}
\end{align*}
**Atomic sentences.** For closed terms $t_1, \dots, t_k$,
\begin{align*}
A \models \phi(t_1, \dots, t_k) &\iff ([t_1], \dots, [t_k]) \in \phi_A \iff \bar S \vdash \phi(t_1, \dots, t_k),
\end{align*}
by the definition of $\phi_A$. The case $\phi(t_1, t_2) = (t_1 = t_2)$ is $A \models t_1 = t_2 \iff [t_1] = [t_2] \iff t_1 \sim t_2 \iff \bar S \vdash t_1 = t_2$.
**Negation.** Suppose $(\star)$ holds for $p$. Then
\begin{align*}
A \models \neg p &\iff A \not\models p \iff \bar S \not\vdash p \iff \bar S \vdash \neg p,
\end{align*}
where the last equivalence uses completeness and consistency of $\bar S$: if $\bar S \not\vdash p$, completeness forces $\bar S \vdash \neg p$; conversely, if $\bar S \vdash \neg p$ and also $\bar S \vdash p$, then $\bar S \vdash \bot$, contradicting consistency.
**Implication.** Suppose $(\star)$ holds for $p$ and $q$. Then
\begin{align*}
A \models p \Rightarrow q &\iff A \not\models p \text{ or } A \models q \\
&\iff \bar S \not\vdash p \text{ or } \bar S \vdash q \\
&\iff \bar S \vdash \neg p \text{ or } \bar S \vdash q \\
&\iff \bar S \vdash p \Rightarrow q.
\end{align*}
The third equivalence uses completeness of $\bar S$ as above. For the last: $(\Rightarrow)$ if $\bar S \vdash \neg p$, then $\bar S \vdash p \Rightarrow q$ by the tautology $\neg p \Rightarrow (p \Rightarrow q)$; if $\bar S \vdash q$, then $\bar S \vdash p \Rightarrow q$ by $q \Rightarrow (p \Rightarrow q)$. $(\Leftarrow)$ if $\bar S \vdash p \Rightarrow q$ and $\bar S \not\vdash \neg p$, then by completeness $\bar S \vdash p$, hence by modus ponens $\bar S \vdash q$.
**Existential quantifier.** Suppose $(\star)$ holds for every sentence of the form $q[t/x]$, with $t$ a closed term of $\bar L$. We show $(\star)$ for $(\exists x)\, q$.
$(\Leftarrow)$ Suppose $\bar S \vdash (\exists x)\, q$. By the witness property of $\bar S$ (Step 3(c)), there exists a constant $c \in \bar L$ with $\bar S \vdash q[c/x]$. By the inductive hypothesis, $A \models q[c/x]$, i.e., the interpretation $c_A = [c]$ satisfies $q$ in $A$. Therefore $A \models (\exists x)\, q$.
$(\Rightarrow)$ Suppose $A \models (\exists x)\, q$. Then there exists $[t] \in A$, with $t$ a closed term of $\bar L$, such that $A \models q[t/x]$ (we use the fact that every element of $A$ is of the form $[t]$ for some closed term $t$). By the inductive hypothesis, $\bar S \vdash q[t/x]$. By the predicate-calculus axiom of **existential introduction** $q[t/x] \Rightarrow (\exists x)\, q$, we conclude $\bar S \vdash (\exists x)\, q$.
**Universal quantifier.** $(\forall x)\, q$ is logically equivalent to $\neg(\exists x)\, \neg q$; the case follows from the existential and negation cases.
**Conclusion.** By $(\star)$, for every $p \in S$, since $\bar S \vdash p$ (as $S \subseteq \bar S$), we have $A \models p$. Thus $A$ is a model of $S$ in the expanded language $\bar L$; by forgetting the interpretations of the fresh constants (i.e., taking the **reduct** to $L$), $A$ becomes a model of $S$ in $L$.[/step]