intentionally assuming an alternate meaning, other than the one intended, for a word or phrase.
Examples:
LOML: Do you mind? [helping me with _____]
Me: Not very well.
Co-worker with handful of 12" rulers: Do you need a ruler?
Me: Usually. I'm pretty unruly.
Does anyone know of a literary term for this?
I know "Malapropism" is choosing an incorrect word that sounds similar.
I know "Alliteration" is using the same consonant sound repeatedly.
I could go on, but you get the idea.