Maximum number of iCloud accounts on iPad 1 with iOS 5.

I recently sold my old iPad 1 online, however, I was informed by the person who purchased the iPad that he was no longer able to create iCloud accounts on the iPad because it said that the maximum number of iCloud accounts for that device had been exceeded. Is there any way to use iCloud on iPad 1 in such a situation? Will a factory reset help?

Any device, iOS or OS X, has a lifetime limit of how many new iCloud accounts can be actived using it, which is 3.  Once that number of iCloud accounts has been actived from that device, that device cannot be used any longer to make any new iCloud accounts.  There is no way around that restriction.
You can use that device with whatever existing iCloud account you wish to set up on it, but you cannot use it to create any new iCloud accounts.
The person who bought your iPad will have to initially create their iCloud account from another Apple device.  Once created, they can use their iCloud account on your old iPad.

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