When a user terminal makes contact with another party using a phone call, a video communication, a short message service, a multimedia message service, an instant message service, or an e-mail, functions supported by the other party's terminal are displayed on the user terminal using presence information. When a type of preferred contact is detected, a menu based on the detected preferred contact type is provided. In the user terminal, a transceiver receives the presence information and a controller displays the menu listing the functions supported by the other party's terminal in a desired method using the presence information. The controller extracts information about the detected preferred contact type set by the other party's terminal from the received presence information and displays the menu in a desired method based on the extracted information.