It is confusing but they aren't contradictory. Section 110 refers to a situation where you subdivide the common property and create a new lot or lots (so it is no longer common property), which is then transferred to another party. That is a far more complicated process, you need to register a new strata plan and transfer of the lot, and certify that the owners corporation has passed a special resolution to approve the transfer. I doubt very much if that was done in this case.
Therefore you would usually go the exclusive use route because it is much simpler.