If iOS 7 is installed on the device then this is a built-in security measure against theft to prevent a thief from erasing content and using as new. You will need to get in touch with the original owners.
Go into setting and then "Reset". Then choose to reset all and delete all content from previous owner.
SOURCE: how to set up password on my new ipad mini
The following can be done on ipad with iOS 8:
1. Press the home button( the round button on the front side of your ipad), to go to the home screen.
2. Find the Settings icon ( looks like gray clockwork gears) and tap on it to launch the Settings app.
3. After settings app is started try to find on the left side of the screen Passcode ( has a red lock icon near the text) and tap on it
4. In the passcode setting screen you can choose the type of passcode with the Simple passcode setting switched on or off ( simple means a 4 digit number, not simple means any character combination
5. By taping on Turn passcode on you can enter your passcode. Be carefull not to forget your passcode, otherwise you will not be able to use your ipad later.
SOURCE: how do i factory reset apple ipad i forgot my apple id and password
Resetting the ipad will not help... The I'd and password are stored at the apple store.
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