[step:Establish the weak inequality: every flow value is at most every cut capacity]Let $x$ be any feasible flow with value $\delta$, and let $S \subset V$ be any cut with $1 \in S$ and $n \in V \setminus S$. Define the flow across the cut:
\begin{align*}
f_x(S, V \setminus S) &:= \sum_{\substack{(i,j) \in E \\ i \in S, \, j \notin S}} x_{ij}, \qquad
f_x(V \setminus S, S) := \sum_{\substack{(i,j) \in E \\ i \notin S, \, j \in S}} x_{ij}.
\end{align*}
By flow conservation, the net flow out of $S$ equals the flow value:
\begin{align*}
\delta = f_x(S, V \setminus S) - f_x(V \setminus S, S).
\end{align*}
To verify this, sum the flow conservation equations over all nodes $i \in S$. Each edge entirely within $S$ contributes equally to the outflow of its tail and the inflow of its head, so it cancels. The remaining terms are exactly the flow across the cut. The source node $1 \in S$ contributes $+\delta$ (by definition of the flow value), and all other nodes in $S$ contribute $0$ (by conservation).
Since $x_{ij} \geq 0$ for all edges, we have $f_x(V \setminus S, S) \geq 0$, so:
\begin{align*}
\delta = f_x(S, V \setminus S) - f_x(V \setminus S, S) \leq f_x(S, V \setminus S) \leq \sum_{\substack{(i,j) \in E \\ i \in S, \, j \notin S}} C_{ij} = C(S),
\end{align*}
where the last inequality uses $x_{ij} \leq C_{ij}$ (the capacity constraint). Therefore $\delta \leq C(S)$ for every feasible flow $\delta$ and every cut $S$.[/step]