That 'splains it. Any hint on what caused the failure? That brake pad is in a position that it shouldn't be; something caused it to move there.
Looks like you need a new caliper. Probably want to do both, or at least rebuild the other side. If it were mine, I'd replace or rebuild the master cylinder and rear brake cylinders, as well. And look over the other caliper very closely if you don't rebuild or replace it.
New flexible lines at each front wheel and at the rear axle would also be a good investment. Who knows how long the system has been out of brake fluid and is rotted/corroded.
Mac's probably has all of the pre-bent brake lines, too, if you need 'em.
