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> The conditions seem clear, if your artwork is selected

I believe the "if" in your sentence is the "on spec" part. You spend time (effectively money) working on something that may or may not get used and thus paid.

> The 'spec'/agreement doesn't seem ambiguous.

"spec" isn't specification in this context; it's more akin to "speculation". Oxford dictionary gives "on spec" as "in the hope of success but without any specific plan or instructions".



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