How do i reinstall OS X to my Mac from the OS X Utilities

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My friend has a job where he finds cool stuff all the time and gets to take it home. He recently found a mac computer and we re trying to get it up and running again.

On startup it loads OS X Utilities and prompts me to:
-Restore from time machine backup
-Reinstall OS X
-Get Help Online
-Repair and Disk Utility

out of those options, the only one that gives hope is Reinstalling, but after entering my Apple ID it doesnt seem to accept it.

I believe this is because the original owner had a digital copy of OS X bought from the mac store and I can only reinstall using that Apple ID.

The big problem is, in this startup mode that I m stuck in, I cant download the Apple App store to buy/download the OS.
(When I tried, it said I didnt have enough disk space, even though all hard drives are empty)

What steps can I take to get the OS linked to my Apple ID, or am I able to download the app store a different way? Can I buy a disk or a download copy?
 

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