Can you use iphone 4 with a att prepaid plan?

My daughter dropped my phone in the bathtub and now it will not turn on. I need to upgrade anyways so am looking for a new phone. My Mr has a iphone 4 and said he could upgrade his phone to the newest iphone and give me his iphone 4. The iphone 4 has not place for a sims card though suggesting you MUST have a contract with ATT to use the iphone 4. With my current iphone 3 there's a sims cards slot and I use the $50 unlimited everything prepaid ATT plan on it with no problem. So question being, can I use his iphone 4 with the same prepaid plan that I have now, or does the iphone 4 Def require a contract to use it?

No you can't

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